Mäori Economy in the Waikato Region ii FOREWORD

E ngä mana, e ngä reo, e ngä karangatanga maha Tënä koutou katoa

This report highlights the significant contribution of Mäori to the Waikato economy, with a quarter of the Mäori collective asset base located in the Waikato. A higher proportion of residents of the Waikato identify themselves as Mäori than in New Zealand as a whole. Through participation in the labour market and the ownership of a significant asset base, especially in agriculture, forestry and fishing and property and business services, Waikato iwi are active investors in a range of sectors, which offers significant potential for the Waikato. The Mäori Economy in the Waikato Region report provides us with robust data and information on which to base some focussed, action-oriented activities. Central and local government, Mäori asset holders and business leaders need to continue to work together to create sustainable economic prosperity for whänau, communities and the Waikato region. Whatungarongaro te tangata, toitü te whenua – As people disappear from sight, the land remains. It is beholden on us to work together towards a sustainable economic future for the generations to come. In closing, we thank all those organisations and individuals that contributed to this report. We also acknowledge the authors of this report.

Nä mätou

Vaughan Payne Michelle Hippolite Te Horipo Karaitiana Chief Executive Chief Executive Chief Executive Waikato Regional Council Te Puni Kökiri Federation of Mäori Authorities

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 iv CONTENTS 1 INTRODUCTION 8 1.1 Purpose of report 8 1.2 Working definition of the Mäori economy 8 1.3 Method and definitions 9 1.4 Report structure 10 2 DEMOGRAPHIC PROFILE 11 2.1 Mäori in the Waikato region 11 3 ASSETS 16 4 COLLECTIVELY OWNED ASSETS 20 4.1 Mäori collectively owned assets in the Waikato region 20 4.2 Ahu whenua trusts 24 4.3 Mäori Incorporations 26 4.4 Treaty of Waitangi Settlement Assets 27 5 ASSETS OF MÄORI BUSINESSES 34 5.1 Mäori businesses contribution to Waikato asset base 34 5.2 Mäori business assets owned by employers 35 5.3 Mäori entrepreneurial assets 36 6 BUSINESSES 38 6.1 Key Industries for Waikato Mäori 38 6.2 Contribution of Mäori GDP to overall GDP in the Waikato 39 6.3 Contribution by Mäori to GDP by district in the Waikato 40 6.4 Contribution of Waikato Mäori GDP to New Zealand Mäori GDP 43 7 PEOPLE 44 7.1 Mäori employment by Industry in the Waikato region 44 7.2 Mäori employment by district in the Waikato region 46 7.3 Individual income 49 7.4 Mäori household income and expenditure 49 8 CONCLUSION 52

APPENDIX: METHODOLOGY AND DEFINITIONS 53 ANNEX 1: MÄORI DESCENT POPULATION IN THE WAIKATO REGION 60

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 TABLES Table 2.1: Resident Mäori population in the Waikato region and New Zealand, 2006 and 2013 11 Table 2.2: Resident Mäori population in the Waikato region by district, 2013, 2006 14 Table 2.3: Age distribution of the Mäori population in the Waikato region, 2013 15 Table 3.1: Mäori asset base in the Waikato region and New Zealand CONTENTS by industry, 2012 ($m) 18 Table 3.2: Components of the Mäori asset base in the Waikato region, 2012 ($m) 19 Table 4.1: Mäori collectively owned assets by industry in Waikato and New Zealand, 2012 ($m) 22 Table 4.2: Ahu whenua trusts in the Waikato region by geographic trust group 25 Table 4.3: Main Incorporations in the Waikato region by land area 26 Table 4.4: Settlement entity assets in the Waikato region, value as at 2012, ($m) 28 Table 4.5: Allocated fishery assets in the Waikato region, value 2012, ($m) 32 Table 5.1: Mäori employer and self-employed enterprises: Waikato, 2012, 35 Table 5.2: Mäori employer (with employees) count and the asset value of these businesses by industry for the Waikato region, 2012 ($m) 36 Table 5.3: Mäori self-employed (without employees) count and asset value of these enterprises by industry for the Waikato region, 2012 ($m) 37 Table 6.1: Share of Mäori value-added in the Waikato region, 2012 ($m) 39 Table 6.2: Mäori value added for the districts in the Waikato region by industry, 2012 ($m) 43 Table 7.1: Mäori employment by district and industry (Waikato region), 2012 46 Table 7.2: Mäori household income and outlays in the Waikato region, 2010 ($m) 51 Table A1: Mäori descent population in the Waikato region and New Zealand, 2006 and 2013 60 Table A2: Mäori descent population in the Waikato region by district, 2006 and 2013 63

FIGURES Figure 2.1: Resident Mäori population in the Waikato region by district, 2013 12 Figure 2.2: Resident Mäori population in the Waikato region by district, 2006 and 2013 13 Figure 3.1: Mäori asset base in the Waikato region, 2012 17 Figure 4.1: Mäori collectively owned assets in the Waikato region, 2012 (%) 21 Figure 4.2: Mäori collectively owned assets by industry in Waikato and New Zealand, 2012 23 Figure 6.1: Mäori GDP share of industry in the Waikato region, 2012 40 Figure 6.2: Distribution of Mäori GDP by district in the Waikato region, 2012 40 Figure 6.3: Mäori value added for the districts in the Waikato region by industry, 2012 41 Figure 7.1: Distribution of Mäori employment by industry in the Waikato region, 2012 45 Figure 7.2: Mäori employment for the districts in the Waikato region by industry 48 Figure 7.3: Mäori household income for the Waikato Region 49 Figure 7.4: Mäori household outlays for the Waikato region 50 Figure A1: Mäori descent population in the Waikato region by district, 2013 60

vi WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 1 INTRODUCTION

1.1 PURPOSE OF REPORT This report provides an up to date and comprehensive collection of quantitative data and empirical evidence about the nature and state of the Mäori economic contribution in the Waikato region. It aligns with many of the recommendations of He Kai Kei Aku Ringa (2012), the Mäori Economic Development Strategy and Action Plan, and will assist in understanding and establishing the most significant drivers of future economic success for Mäori in the region. The report will inform the implementation of the Waikato regional economic development strategy. Mäori economic development is important not only for Mäori, but for the overall economic performance of the Waikato region and New Zealand as a whole. For the economy of the Waikato region to achieve its long-run potential growth, it must make the best use of all available resources. This report assesses the economic contribution that Mäori make to the Waikato region. This was achieved by looking at the economic contribution of Mäori in the Waikato region across three elements – assets, businesses and people.

ECONOMIC CONTRIBUTION BY MÄ ORI TO THE WAIKATO REGION

ASSETS BUSINESSES PEOPLE

‘Assets’ refers to the Mäori asset base, which is made up of collectively owned assets held by Mäori as well as the assets held by businesses of Mäori employers and self-employed. ‘Businesses’ refers to the overall Mäori economic contribution in terms of gross domestic product (GDP). ‘People’ refers to the contribution that Mäori make to the economy through earning salaries and wages and spending these salaries and wages in the economy.

1.2 WORKING DEFINITION OF THE MÄORI ECONOMY A broad definition of the Mäori economy has been adopted in order to provide the scope necessary to capture all people, entities and enterprises that self-identify as Mäori. The Mäori economy for the purpose of this report is derived from the previous work that has been completed by BERL on the national Mäori economy (see ‘method and definitions’ section). The Mäori economy in the Waikato region has many dimensions and for the purposes of quantifying the economy, we focus on Mäori employment, income, spending and the asset base. This report estimates the size of the Mäori economy across some of these dimensions, and illustrated the relationships between the Mäori economy in the Waikato region and the wider New Zealand economy. Various dimensions are presented to highlight that the contribution of the Mäori economy cannot be summarised by one number or percentage.

8 The participation in, and contributions to, an economy of an industry, sector or population group can be described across many dimensions. This report explicitly looks at the economic contribution of Mäori to the Waikato region.

1.3 METHOD AND DEFINITIONS This report has been compiled using various sources of data and modelling. In particular, it relies heavily on the methodology, modelling and research from BERL’s:

• ‘Asset base, income, expenditure and GDP of the 2010 Mäori economy’ report commissioned by the Mäori Economic Taskforce in 2011; and • ‘Mäori Asset Base in the Waiariki Economy’ report commissioned by Te Puni Kökiri in 2009.

A full description of the methodology used to calculate the economic contribution of Mäori in the Waikato region is provided in Section 9 of this report. Every effort has been made to use latest available data sources. All information presented is therefore in 2012 values unless otherwise stated. At the time of preparing this report, detailed Mäori population data from the 2013 Census was available.1 This data has been used in the ‘Demographic profile’ section of this report.

Definition of the Waikato region This report defines the Waikato region using Statistics New Zealand regional council boundaries for all aspects of the report apart from ‘collectively owned assets2’. For ‘collectively owned assets’, the Waikato region is defined in terms of Office of Treaty Settlement boundaries. Eleven territorial authorities are, either fully or partially, within the boundaries of the Waikato Regional Council. Nine of these territorial authorities are fully within the boundaries of the regional council: Thames-Coromandel district, Hauraki district, Waikato district, Matamata-Piako district, Hamilton city, Waipa district, Otorohanga district, South Waikato district, Waitomo district. The majority of Taupö district boundaries are within the boundaries of the Waikato Regional Council. A small part of Rotorua district boundaries are within the Waikato Regional Council boundaries. This report, where possible, provides breakdowns of the territorial authorities within the Waikato Regional Council boundaries.3 Where breakdowns are provided, the nine territorial authorities that are fully within the boundaries are presented. The entire Taupö district, including the small areas that are outside the Waikato Regional Council boundaries, is also presented4. Rotorua district is not presented due to a large amount of employment and economic activity in the district occurring outside of the Waikato region. This means that the sum of the territorial authorities presented will not equal the Waikato Regional Council totals provided. For the collectively owned asset base, Office of Treaty Settlement boundaries were used to define the coverage of the region. Settlement boundary areas identified as being in the Waikato region were: Ngäti Te Ata, Ngäti Tamaoho, Hauraki, Waikato-Tainui (Raupatu), Waikato-Tainui (River and

1 Detailed 2013 Census employment data for Mäori in the Waikato region was not available when preparing this report. 2 Assets held in collective ownership through Mäori authorities such as trusts and incorporations, rünanga, and Treaty settlement entities. 3 For a graphical outline of the territorial authorities within the boundaries of the Waikato region, see http://www.lgnz.co.nz/assets/North-Island-PNG.PNG 4 Most employment and economic activity within the Taupo District occurs within the boundaries of the Waikato Regional Council.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 other claims), Waitomo, Ngäti Maniapoto, Maraeroa A&B, Pouakani, Ngäti Raukawa, Ngäti Korokï Kahukura, and Ngäti Haua. Settlement boundaries within the region that have been previously used to calculate the asset base of other areas were excluded from our definition of the region to minimise double counting. The definition of the Waikato region for the collectively owned asset base does not directly align with the coverage of the Waikato Regional Council. In the broadest sense, differences in the definition largely occur because collective asset base: (1) includes Ngäti Maniapoto, which is part of the Waikato, Taranaki and Manawatu-Whanganui regional councils, and (2) does not cover the parts of Rotorua district that are included in the Waikato Regional Council boundary areas. The iwi covered by the settlement areas used to estimate the value of collectively owned assets in the Waikato region are: Ngäi Tai (Hauraki), Ngäti Hako, Ngäti Hauä, Ngäti Hei, Ngäti Kearoa / Ngäti Tuarä, Ngäti Korokï Kahukura, Ngäti Maniapoto, Ngäti Maru (Hauraki), Ngäti Paoa, Ngäti Porou ki Harataunga ki Mataora, Ngäti Pükenga ki Waiau, Ngäti Rähiri Tumutumu, Ngäti Tahu / Ngäti Whaoa, Ngäti Tamaoho, Ngäti Tamaterä, Ngäti Tara Tokanui, Ngäti Turangitukua, Ngäti Tuwharetoa, Ngäti Whanaunga, Patukirikiri, Pouäkani, Ngäti Raukawa, Rereahu, Waikato, Ngäti Hinerangi.

1.4 REPORT STRUCTURE The rest of the report is structured as follows:

• Section 2 provides a short demographic profile of Mäori in the Waikato region • Section 3 gives an overview of the Mäori asset base in the Waikato • Section 4 examines the Mäori asset base of the Waikato in terms of collectively owned assets • Section 5 takes a closer look at the Mäori asset base of the Waikato region in terms of the assets held by businesses of employers and self-employed enterprises • Section 6 examines the Mäori contribution to the Waikato economy in terms of GDP • Section 7 looks at the contribution Mäori people make to the economy of the Waikato region through income and expenditure • Section 8 provides a full description of the methodology and definitions used in this report.

A separate short executive summary that outlines key observations for the Waikato Mäori economy from this situational analysis supplements this report.

10 2 DEMOGRAPHIC PROFILE

In 2013, 21.9 percent of the resident population in the Waikato region identified as Mäori compared to 14.9 percent nationally. Just over a third of Mäori in the Waikato region are in Hamilton city. As is the case nationally, Mäori in the Waikato region have a young age profile. This section provides a short demographic profile of the Mäori population in the Waikato region. This profile is based on data from Statistics New Zealand’s 2013 Census, which provides information on Mäori ethnicity. Whilst this report focuses on Mäori ethnicity, it is useful to note that the Census also captures information about Mäori descent.5 Annex 1 provides a short profile of Mäori descent using Census data.

2.1 MÄORI IN THE WAIKATO REGION In 2013, 21.9 percent of the resident population in the Waikato region identified as Mäori compared with 14.9 percent nationally. Mäori in the Waikato region made up 14 percent of all resident Mäori in New Zealand in 2013. Table 2.1 shows the Mäori resident and total resident population in the Waikato region in 2006 and 2013. Between 2006 and 2013 the usual Mäori resident population in the Waikato region grew by 9.6%, compared to 5.9% nationally. The proportion of people in the Waikato region that identified as Mäori increased from 21.0% in 2006 to 21.9% in 2013. This growth was greater than the overall growth of people identifying as Mäori nationally, which increased from 14.6% to 14.9% over the same period.

Table 2.1: Resident Mäori population in the Waikato region and New Zealand, 2006 and 2013

Mäori Population Total Stated Population # Mäori Population (%)

2006 2013 % Change 2006 2013 % Change 2006 2013 Change 2006-2013 2006-2013 2006- 2013

Waikato 76404 83742 9.6% 363477 382536 5.2% 21.0% 21.9% 0.9 Region

New 565329 598602 5.9% 3860163 4011402 3.9% 14.6% 14.9% 0.3 Zealand

Source: Statistics New Zealand 2013 and 2006 Censuses of Population and Dwellings Total Stated Population' excludes residual categories (not elsewhere included)

At a territorial authority level, just over a third of the Mäori population in the Waikato region were in Hamilton city in 2013. Other districts with that had a large number of Mäori in 2013 were Waikato district (17 percent) and Taupö district (11 percent). Figure 2.1 shows a breakdown of the resident Mäori population in the Waikato region in 2013.

5 Mäori ethnicity and Mäori descent are different concepts – ethnicity refers to cultural affiliation, while descent is about ancestry. A person has Mäori descent if they are of the Mäori race of New Zealand; this includes any descendant of such a person. This definition requires people to know their biological ancestry. The concept of ethnicity differs from that of descent, having a social & cultural base, as opposed to a biological base.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Figure 2.1: Resident Mäori population in the Waikato region by district, 2013

Thames-Coromandel District Hauraki District Taupo District 5% 11% 4%

Waitomo District 4% Waikato District 17% South Waikato District 8%

Otorohanga District 3%

Matamata-Piako Waipa District District 7% 6%

Hamilton City 35%

Source: Statistics New Zealand 2013 Census of Population and Dwellings

The proportion of Mäori in the Waikato region is above the national average (14.9 percent) in eight out of 10 territorial authorities. In 2013, almost 42 percent of the population in the Waitomo district identified as being Mäori while the proportion was also high in South Waikato, Taupö, Ötorohanga and Waikato districts. For 2006 and 2013, the Mäori population growth was significant in Hamilton city (16.3 percent); Matamata-Piako district (15.6 percent) and Waipa district (13.7 percent). Conversely, the Mäori population declined in the Waitomo district (down 3.7 percent) and in Otorohanga district (down 0.5 percent). Figure 2.2 shows the change in the Mäori population in the Waikato region by district from the 2006 and 2013 Censuses.

12 Figure 2.2: Resident Mäori population in the Waikato region by district, 2006 and 2013

Source: Statistics New Zealand’s 2013 and 2006 Censuses of Population and DwellingsL The proportion of Mäori increased in nine out of the 10 districts in the Waikato region for 2006 and 2013. Hauraki district had the largest increase in the proportion of Mäori population, increasing from 19.2 percent in 2006 to 21.2 percent in 2013. Whilst the Mäori population increased in the Waikato district between the censuses (up 9.3 percent), overall population growth in the district of 24.4 percent, resulted in a reduction in the

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 share of Mäori population in the district from 24.4 percent in 2006 to 24.2 percent in 2013. Despite declines in the Mäori usual resident population6 between censuses in the Waitomo and Otorohanga districts, the share of Mäori in these districts increased. This resulted from a greater overall population decline in these districts (down 6.1 percent in Waitomo district and 1.2 percent in Otorohanga district) compared to the decline in the Mäori population (down 3.1 percent in Waitomo district and 0.5 percent in Otorohanga district).

Table 2.2: Resident Mäori population in the Waikato region by district, 2013, 2006

Mäori Population Total Stated Population # Mäori Population (%)

2006 2013 % Change 2006 2013 % Change 2006 2013 Change 2006- 2006-2013 2006- 2013 2013

Thames-Coromandel 4,017 4,149 3.3% 25,050 25,017 -0.1% 16.0% 16.6% 0.6 District

Hauraki District 3,318 3,591 8.2% 17,274 16,941 -1.9% 19.2% 21.2% 2.0

Waikato District 13,173 14,403 9.3% 53,943 59,400 10.1% 24.4% 24.2% -0.2

Matamata-Piako District 3,882 4,488 15.6% 29,466 30,315 2.9% 13.2% 14.8% 1.6

Hamilton City 24,603 28,605 16.3% 123,699 134,211 8.5% 19.9% 21.3% 1.4

Waipa District 5,382 6,120 13.7% 41,145 44,493 8.1% 13.1% 13.8% 0.7

Otorohanga District 2,358 2,346 -0.5% 8,742 8,634 -1.2% 27.0% 27.2% 0.2

South Waikato District 6,714 6,762 0.7% 21,291 20,757 -2.5% 31.5% 32.6% 1.1

Waitomo District 3,642 3,528 -3.1% 8,997 8,448 -6.1% 40.5% 41.8% 1.3

Taupo District 8,646 9,030 4.4% 30,681 31,131 1.5% 28.2% 29.0% 0.8

Waikato Region 76,404 83,742 9.6% 363,477 382,536 5.2% 21.0% 21.9% 0.9

New Zealand 565,329 598,602 5.9% 3,860,163 4,011,402 3.9% 14.6% 14.9% 0.3

Nationally, Mäori have a young age profile compared to the total population. In 2013, 34 percent of the Mäori population was under 15 years of age. This compares to 20 percent of the total national population which was under 15 years of age. The age distribution of Mäori in the Waikato region is similar to the age distribution of Mäori nationally. In 2013, 58 percent of resident Mäori population in the Waikato region were under 30 years of age. Table 2.3 shows the age distribution of Mäori in the Waikato region.

6 The census usually resident population count of New Zealand is a count of all people who usually live, and are present, in New Zealand on a given census night. This count excludes visitors from overseas and excludes residents who are temporarily overseas on census night.

14 Table 2.3: Age distribution of the Mäori population in the Waikato region, 2013

14 years & under 15 - 29 years 30-49 years 50 - 64 years 65 years +

Number % Number % Number % Number % Number %

Thames-Coromandel 1359 33% 786 19% 948 23% 684 16% 369 9% District

Hauraki District 1272 35% 759 21% 780 22% 540 15% 243 7%

Waikato District 5043 35% 3108 22% 3528 24% 1974 14% 750 5%

Matamata-Piako 1665 37% 1062 24% 1011 23% 528 12% 216 5% District

Hamilton City 9654 34% 8301 29% 6642 23% 2919 10% 1083 4%

Waipa District 2103 34% 1383 23% 1398 23% 894 15% 345 6%

Otorohanga District 765 33% 546 23% 507 22% 354 15% 162 7%

South Waikato 2412 36% 1491 22% 1545 23% 915 14% 399 6% District

Waitomo District 1167 33% 765 22% 825 23% 525 15% 249 7%

Taupo District 2949 33% 2034 23% 2166 24% 1284 14% 597 7%

Waikato Region 28662 34% 20415 24% 19521 23% 10704 13% 4443 5%

New Zealand 202320 34% 144081 24% 142815 24% 77211 13% 32178 5%

Source: Statistics New Zealand 2013 Census of Population and Dwellings

Within the Waikato region, Hamilton city and Matamata-Piako district have a higher percentage of Mäori aged less than 30 years (63 and 61 percent respectively). The resident Mäori population over 50 years in Thames-Coromandel district is larger than is the case nationally (25 percent compared to 18 percent nationally).

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 3 ASSETS

The Mäori asset base in the Waikato region in 2012 was estimated at $6.2 billion, accounting for 15 percent of total Mäori assets in New Zealand.

ECONOMIC CONTRIBUTION BY MÄ ORI TO THE WAIKATO REGION

ASSETS BUSINESSES PEOPLE

This section summarises the value of the Mäori asset base in New Zealand and the Waikato region. The types of Mäori assets in the Waikato region by industry are also presented. This report defines and measures the Mäori asset base in terms of:

• Collectively owned assets - the assets of trusts, incorporations and other Mäori entities; and • Assets of Mäori businesses: • businesses of self-employed Mäori (without employees); and • businesses of Mäori employers (with employees)7.

3.1 MÄORI ASSET BASE IN NEW ZEALAND The total asset base of the 2012 Mäori economy in New Zealand is estimated at $40.0 billion. This asset base is comprised of businesses of Mäori employers of $23.3 billion (58 percent), businesses of self-employed Mäori of $5.9 billion (15 percent) and the assets of trusts, incorporations and other Mäori entities of $10.8 billion (27 percent).

3.2 MÄORI ASSET BASE COMPOSITION IN THE WAIKATO REGION The Mäori asset base in the Waikato region for 2012 was estimated at $6.2 billion or 15 percent of total Mäori assets in New Zealand. This is comprised of businesses of Mäori employers of $2.6 billion (43 percent), businesses of self-employed Mäori of $668 million (11 percent), and assets of trusts incorporations and other Mäori entities of $2.9 billion (46 percent). Figure 3.1 shows the composition of the Mäori asset base in the Waikato region.

7 This definition of the Mäori asset base was developed by BERL in the report ‘The Asset Base, Income, Expenditure and GDP of the 2010 Mäori Economy’ for the Mäori Economic Development Taskforce in 2011.

16 Figure 3.1: Mäori asset base in the Waikato region, 2012 Thames-Coromandel

District 5%

Hauraki District

4%

Taupo District 11% Source: BERL

Mäori asset base composition in the Waikato region by industry The agriculture, forestry & fishing and property & business services industries make a significant contribution to the Mäori asset base in the Waikato region. In 2012, assets held by Mäori in the agriculture, forestry and fishing industry made up 28 percent (or $1.7 billion) of the total Mäori asset base in the region, while the property & business services industry made up 23 percent (or $1.4 billion). Other important contributors to the Mäori asset base in the Waikato region in 2012 were manufacturing (15 percent) and education (five percent). Table 3.1 summaries the contribution that different industries make to the Mäori asset base for the Waikato region and New Zealand.

Table 3.1: Mäori asset base in the Waikato region and New Zealand by industry, 2012 ($m) Waikato New Zealand Assets ($m) % of Total Assets Assets ($m) % of Total Assets Agriculture, Forestry and Fishing 1,702 28% 11,665 29% Mining 5 0.1% 5 0% Manufacturing 925 15% 3,046 8% Electricity, Gas and Water Supply 203 3% 270 1% Construction 163 3% 1,399 3% Wholesale Trade 127 2% 967 2% Retail Trade 177 3% 1,596 4% Accommodation, Cafes and Restaurants 40 1% 303 1% Transport and Storage 233 4% 2,373 6% Communication Services 169 3% 1,640 4% Finance and Insurance 170 3% 1,654 4% Property and Business Services 1,403 23% 7,534 19% Government Administration and Defence - 0% - 0% Education 302 5% 1,563 4% Health and Community Services 182 3% 570 1% Cultural and Recreational Services 257 4% 4,347 11% Personal and Other Services - 0% - 0% Not Elsewhere Included 122 2% 1,096 3% Total All Industries 6,180 100% 40,028 100%

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Mäori asset base composition in Waikato in relation to the rest of New Zealand The Mäori asset base of the Waikato region is 15 percent of the total Mäori asset base in New Zealand ($40.0 billion) for 2012. The contribution of Mäori assets in the Waikato relative to overall Mäori assets was high in:

• Electricity, gas & water supply: assets held by Mäori in the region made up 75 percent of all electricity, gas & water supply assets in the Mäori asset base. The Tuaropaki geothermal power located in Taupö accounts for the large majority of these assets Waikato region. • Health & community services: assets held by Mäori in the region made up 32 percent of all health & community services in the total Mäori asset base for New Zealand. The Waikato region has a large number of Mäori health and social service providers. • Manufacturing: assets held by Mäori in the region made up 30 percent of all manufacturing assets in the Mäori asset base. The Miraka whole milk processing plant located on Tuaropaki land in Taupö is the main contributor of Mäori manufacturing assets in the region. • Property & business services: assets held by Mäori made up 19 percent of all property and business services assets in Mäori the asset base. A large contributor to the proportion is likely due to the large scale property & business services activities undertaken by Tainui Group Holdings Limited in the region and the associated flow in employment. • Education: in 2012, assets held by Mäori in the region made up 19 percent of all education assets in the total Mäori asset base for New Zealand. The high proportion is likely due to the large number of education institutions in the region. Te Wänanga o Aotearoa, the third largest education institute in New Zealand after the University of Auckland and the Open Polytechnic is based in the Waikato region, as is the University of Waikato and the Waikato Institute of Technology (Wintec).

Table 3.2 provides a summary of the makeup of the Mäori asset base in the Waikato region. Section 4 of this report examines the collectively owned asset base of Waikato Mäori, while Section 5 looks at the assets held by Mäori self-employed and employers in the region.

Table 3.2: Components of the Mäori asset base in the Waikato region, 2012 ($m)

Waikato Mäori Asset Base, 2012 $m Self-employed Employed Collectively Total owned assets Agriculture, Forestry and Fishing 249 517 936 1,702 Mining - - 5 5 Manufacturing 32 320 573 925 Electricity, Gas and Water Supply - - 203 203 Construction 39 124 - 163 Wholesale Trade 16 110 - 127 Retail Trade 24 153 - 177 Accommodation, Cafes and Restaurants 3 37 - 40 Transport and Storage 27 206 - 233 Communication Services 30 139 - 169 Finance and Insurance 6 165 - 170 Property and Business Services 154 503 747 1,403 Government Administration and Defence - - - - Education 7 146 149 302 Health and Community Services 5 45 132 182 Cultural and Recreational Services 41 98 118 257 Personal and Other Services - - - - Not Elsewhere Included 37 85 - 122 Total All Industries 668 2,649 2,863 6,180 Total All Industries as a percentage 11% 43% 46% 100% of total asset base

18 4 COLLECTIVELY OWNED ASSETS The assets of trusts, incorporations, rünanga, Treaty settlement entities and Mäori entities contribute $2.9 billion (46 percent) to the overall Mäori asset base of the Waikato region.

ECONOMIC CONTRIBUTION BY MÄ ORI TO THE WAIKATO REGION

ASSETS BUSINESSES PEOPLE

COLLECTIVELY ASSETS OF OWNED ASSETS BUSINESSES

Government policy and legislation has shaped the ownership and governance arrangements around the Mäori asset base in the Waikato region. As such, a substantial proportion of the asset base in the Waikato region is held in collective ownership through Mäori authorities such as trusts and incorporations, Treaty settlement entities and other Mäori entities such as rünanga and not for profit organisations. This section provides an overview of Mäori collectively owned assets in the Waikato region. It outlines the contribution of Mäori collectively owned assets to the overall Mäori asset base of the Waikato; and investigates the Waikato Mäori asset base in terms of:

• ahu whenua trusts • Mäori land incorporations • Treaty of Waitangi settlements.

The Mäori collectively owned asset base also includes assets held by rünanga and Mäori not for Waikato Mäori Asset Base, 2012 $m profit organisations. While this section does not highlight the assets held by these Mäori entities, Self-employed Employed Collectively Total owned assets their asset values have been included as part of the overall collectively owned asset base of Mäori Agriculture, Forestry and Fishing 249 517 936 1,702 in the Waikato region.8 Mining - - 5 5 Manufacturing 32 320 573 925 4.1 MÄORI COLLECTIVELY OWNED ASSETS IN THE WAIKATO REGION Electricity, Gas and Water Supply - - 203 203 In 2012, Mäori collectively owned assets in the Waikato region were worth $2.9 billion.9 These Construction 39 124 - 163 collectively owned assets make up 26 percent of total Mäori collectively owned assets in New Wholesale Trade 16 110 - 127 10 Retail Trade 24 153 - 177 Zealand ($10.8 billion). Mäori collectively owned assets contribute 46 percent to the overall Mäori Accommodation, Cafes and Restaurants 3 37 - 40 asset base in the Waikato region ($6.2 billion). Transport and Storage 27 206 - 233 Communication Services 30 139 - 169 The collectively owned assets held by Mäori in the Waikato region fit into three broad categories: Finance and Insurance 6 165 - 170 property development11, the primary industry12 and services13. Figure 4.1 shows Mäori collectively Property and Business Services 154 503 747 1,403 Government Administration and Defence - - - - 8 Current accounting practices mean that not-for profit organisations are not required to make annual financial returns publicly available. Where asset Education 7 146 149 302 values of known Mäori not-for-profit organisations are available, they have been included as part of the overall collectively owned asset base of Mäori Health and Community Services 5 45 132 182 in the Waikato region. 9 The Mäori collectively owned asset base in the Waikato region includes the significant assets held by Tuaropaki Trust in the areas of agriculture, dairy Cultural and Recreational Services 41 98 118 257 processing, horticulture, geothermal power generation and telecommunications. The assets of Tuaropaki Trust were not included in the detailed ‘Report Personal and Other Services - - - - on the Maori Asset Base in the Waiariki Economy’ prepared in 2009 but were included in the later ‘Situational Analysis: Maori contribution and Not Elsewhere Included 37 85 - 122 position of the Bay of Connections economy’ report prepared for the Bay of Plenty Regional Council in 2012. 10 The Mäori collectively owned asset base in the Waikato region includes post 2010 Treaty of Waitangi Settlements and, where available, 2012 asset Total All Industries 668 2,649 2,863 6,180 values. The New Zealand Mäori collectively owned asset base, with the exception of assets relating to the Waikato region, is based on 2010 asset Total All Industries as a percentage 11% 43% 46% 100% values and does not include post-2010 Treaty of Waitangi Settlements. We therefore recommend caution when interpreting comparisons between the of total asset base Mäori collectively owned asset base in the Waikato region to the total Mäori collective asset base.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 owned asset base in the Waikato region broken down into these three broad industry groupings.

Figure 4.1: Mäori collectively owned assets in the Waikato region, 2012 (%)14

Services 14%

Primary 60%

Property Development 26%

Source: BERL

Further breakdowns of Mäori collectively owned assets by industry in the Waikato region and the rest of New Zealand are provided in Table 4.1.

Table 4.1: Mäori collectively owned assets by industry in Waikato and New Zealand, 2012 ($m)

Collective Asset Base -$m Industry Waikato Rest of NZ NZ Agriculture 716 1980 2696 Forestry 125 2237 2362 Fishing 95 987 1082 Energy 203 67 270 Mining 5 0 5 Processing 573 0 573 Property Development 747 275 1022 Services 399 2396 2795 Others (e.g. Cash) 0 8 8 Total 2863 7951 10814

Source: BERL

The primary industry (agriculture, forestry, processing, fishing, energy and mining) contributes 60 percent to overall Mäori collectively owned assets in the region. Within the primary industry, large contributors to the Mäori collectively owned asset base in the Waikato region were agriculture, contributing 25 percent of the asset base, and dairy processing contributing 20 percent. The energy industry contributes seven percent to the regions collectively owned asset

11 Property development includes urban and commercial property development 12 Primary industry includes agriculture, forestry, processing, fishing, energy and mining. 13 Services includes education services, health services (e.g., counselling, housing assistance) and broadcasting 14 Property development includes urban and commercial property development; Services includes education services, health services (e.g., counselling, housing assistance) and broadcasting.

20 base while forestry and fishing contribute four and three percent respectively. Property development15 makes up 26 percent of overall collectively owned assets for Mäori in the Waikato region. Furthermore, property development collectively owned assets held by Mäori in the Waikato region make up 73 percent of all collectively owned property development owned by Mäori nationally. Mäori in the Waikato region also hold $399 million of collectively owned assets in the services industry16. These assets make up 14 percent of all collectively owned assets held by Mäori in the Waikato region. Figure 4.2 shows the share of Mäori collectively owned assets in the Waikato region as a proportion of all Mäori collectively owned assets in New Zealand by industry for 2012.

Figure 4.2: Mäori collectively owned assets by industry in Waikato and New Zealand, 2012

Agriculture

Forestry

Fishing

Energy

Mining

Processing Collective Asset Base -$m Property Development Industry Waikato Rest of NZ NZ Agriculture 716 1980 2696 Services

Forestry 125 2237 2362 Others (e.g. Cash) Fishing 95 987 1082 0% 20% 40% 60% 80% 100% Energy 203 67 270 Maori Source: BERL Mining 5 0 5 Rest of Waikato Processing 573 0 573 All New Zealand Mäori collectively owned assets in the mining industry were found in the Waikato Property Development 747 275 1022 region. The Mäori land incorporation ‘Taharoa C Block – Mining’ contributes over 99 percent of Services 399 2396 2795 Mäori collectively owned assets in mining in the Waikato region. At Taharoa, iron sand is mined, Others (e.g. Cash) 0 8 8 concentrated, and exported to China and Japan. Total 2863 7951 10814 All recorded Mäori collectively owned processing assets in New Zealand are located in the Waikato region. The Miraka whole milk powder processing plant, located on Tuaropaki land in the Taupö district, is the main contributor of these assets. The Tuaropaki Trust is a cornerstone shareholder of Miraka Limited. Miraka Limited is also backed by Wairarapa Moana Incorporation; Vinamilk (Vietnam); The Mäori Trustee, Waipapa 9 Trust; Hauhungaroa Partnership; Tauhara Moana Trust; Huiarau Trust; Te Awahohonu Forest Trust Limited; Global Dairy Network and Te Putahitanga o Nga Ara Trust. Seventy five percent of Mäori collectively owned assets in the energy industry are found in the Waikato region. These assets largely come from the Tuaropaki geothermal power station, which

15 Includes urban and commercial property development 16 Within the Mäori asset base, the services industry includes education services, health services, health services (e.g.,counselling, housing assistance) and broadcasting

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 generates energy from the Mokai geothermal energy field, located under Tuaropaki Trust land. The majority of Mäori collectively owned assets in the property development industry (73 percent) were found in the Waikato region. Tainui Group Holdings Limited (TGHL) is the main contributor of property development in the Waikato region. In 2012, Tainui Group Holdings had $694 million in assets, of which approximately 85 percent were in the property development and investment industry. One of the key objectives of TGHL is to maximise wealth, provide long term returns, and consistent dividends to its shareholder.17 Mäori collectively owned assets in the agriculture industry in the Waikato region make up 21 percent of total agricultural assets. Within the region there is a mixture of incorporations and ahu whenua trusts with large sheep & beef and dairy activities. These include Wairarapa Moana ki Pouakani Incorporation, Tuaropaki, Te Hape B and Tiroa B Trust. Along with these large agriculture activities, a number of medium sized ahu whenua land areas are also used for agricultural activities.

4.2 AHU WHENUA TRUSTS Ahu whenua trusts promote the use and administration of land in the interest of their owners.18 These trusts are governed by trustees, often a board, who manage the land on behalf of the owners. These land blocks have multiple owners, ranging from 20 to over 10,000, who are related by whakapapa (extended family ties). These owners have a cultural and shareholder interest in the land. The areas of Mäori land are difficult to ascribe to given geographic regions without the use of Geographic Information System (GIS) databases. Over the past 12 months Waikato Regional Council has had interaction with the five River Iwi Trusts in the region who are at various stages of establishing effective GIS capabilities. Together, these trusts have interests which cover a large percentage of the Waikato region. In each case, the Trusts’ geographic area is legally defined through the settlement process (SO 409144). Further work could be undertaken with the Trusts to obtain further information which may lead to greater accuracy and increased comprehensiveness for the region if the data is available. Using the information in the collectively owned asset base, combined with a range of sources, like the Federation of Mäori Authorities, estimates there are 1,100 ahu whenua trusts in the Waikato region. The total land area of these trusts is approximately 64,900 hectares. Table 4.2 summarises ahu whenua trusts in the Waikato region by broad geographic trust group.

17 Tainui Group Holdings Limited & Waikato-Tainui Fisheries Limited (2013), Tainui Group Holdings Annual Report 2013, p. 20 and p.42 18 http://www.justice.govt.nz/courts/Mäori-landcourt/documents/publications/booklets/Mäori%20Land%20Trusts.pdf/at_download/file

22 Table 4.2: Ahu whenua trusts in the Waikato region by geographic trust group

Geographic Trust groups Trusts in Group Number Total group area Hectares Tiroa E 1 6100 Te Hape 8 4600 Tuaropaki Trust 1 3900 Taharoa Forest Trusts 30 2900 Taumatatotara 3 2500 Hauturu 13 2400 Rangitoto A 13 2200 Waipa 16 2100 Pakirarahi 3 2000 Mangaawakino 5 2000 Aramiro 1 2000 Wharepuhunga / Aotearoa 5 1900 Kinohaku West 15 1700 Umuhapuku 7 1700 Harataunga 8 1700 Te Akau 10 1300 Arapae 3 1200 Maungatautari 32 900 Pirongia West 4 600 Taupiri 11 500 19 large groups 190 44200 Other Trusts 910 20700 All Trusts 1100 64900

Source: BERL

A small number of ahu trusts administer very large areas of land and are presumably operating as forest and farm production units. The 20 larger ahu whenua trust groups (17 percent of all ahu whenua trusts in the region) administer an average land area of 233 hectares while the remaining 83 percent of ahu whenua trusts in the region administer an average land area of 23 hectares. Furthermore, 33 percent of all ahu whenua trusts administered an average land area of less than five hectares. These small areas of land are likely to be sections with housing on them or land that is vacant. Ahu whenua trusts in the Waikato, where the asset value was identifiable, ranged in value from $180,000 to just under $1 billion. The activities of these trusts were largely in the primary sector – forestry and sheep and beef farming and dairy processing as well as geothermal energy. A small number of trusts were involved in mining or providing services. As part of this project, interviews were undertaken with a small number of ahu whenua trusts to obtain a greater understanding of their asset base, activities, future planning and communication with its beneficiaries. Common themes from these interviews include19:

19 Ahu whenua trusts interviewed and highlighted in this report are large, well-known and successful trusts. They may not be reflective of all ahu whenua trusts in the Waikato region.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 • While the main activities of trusts are primarily in the forestry and sheep and beef farming industries, trusts are, where practical, increasingly looking at alternative and sustainable revenue streams • Trusts are open to the idea of investigating joint ventures with other parties, provided they align with the objectives of the trust. This is typically done on a case by case basis. Gourmet Mokai, a 5.5 hectare climate controlled glasshouse on Tuaropaki land, is an example of a joint venture involving an ahu whenua trust. Under this joint venture, Tuaropaki Trust holds a 25 percent shareholding in Gourmet Mokai, Gourmet Paprika Ltd. has a 50 percent shareholding and the Hauhungaroa Partnership (Ngäti Parekawa) has a 25% shareholding. • Trusts regularly develop, evaluate and revise short-medium term (three to five years) strategic plans. These plans include the use of assets and resources. • Beneficiaries of trusts are typically kept informed via regular pänui and trustee meetings. Trustee meetings are often less frequent. 4.3 MÄORI INCORPORATIONS Mäori land incorporations have a structure similar to a company, but their purpose is to manage Mäori freehold land20 on behalf of its owners. These incorporations can include one or more blocks of Mäori freehold land if at least one of the blocks has more than two owners. To establish Mäori land incorporation, landowners apply to the Mäori Land Court (MLC). Once Mäori land incorporation has been constituted, it can acquire any type of land.21 The majority of Mäori land incorporations are administered by their owners as a group; however they can also be administered by the Mäori Trustee, Te Tumu Paeroa, the Guardian Trust or accountants. 11 incorporations were identified in the Waikato region. These incorporations and their associated land areas are outlined in Table 4.3.

Table 4.3: Main Incorporations in the Waikato region by land area

Main Incorporations Land area Hectares Wairarapa Moana Ki Pouakani 11600 Maraeroa C or Pukemako 5500 Mangapapa B2 4700 Mangaawakino A1 1200 Taharoa C 1300 Mataora 4 1200 Tainui Kawhia 1200 Waipa-Ranui 1100 Rangitoto A No 30B 600 Mangaora A 300 Maraetai No 11 100 Main incorporations 28800

Source: BERL

By matching Mäori Land Court information about land size, with available relevant annual report and Department of Internal Affairs - Charities data, we were able to identify the asset value of

20 Land where the beneficial ownership of which has been determined by the Mäori Land Court by freehold order has the status of Mäori freehold land 21 http://www.justice.govt.nz/courts/Mäori-land-court/documents/publications/booklets/Incorporations.pdf

24 six Mäori incorporations in the Waikato region. The land value of these organisations ranged from 1,200 hectares to 11,600 hectares while the asset value ranged from $126,000 to $152 million. The largest assets held by these organisations were in the forestry sector. Agricultural assets were the second largest asset held. The activities of incorporations with larger land area tended to be more diverse than incorporations with a smaller land area. As part of this project interviews were undertaken with a small number of large, successful Mäori incorporations to develop a greater understanding of their asset base, activities, future planning and communication with their beneficiaries. Common themes from these interviews include:

• While the activities of Mäori incorporations, like ahu whenua trusts, are primarily in the forestry and sheep and beef farming industries, they often have investments in property. Furthermore, a number of Mäori incorporations are actively looking at alternative and sustainable revenue streams, in order to attract investment. Maraeroa C Incorporation, which has a 5500 hectare commercial pine plantation in Pureora, is an example of an incorporation that has taken steps to develop an alternative revenue stream. Examples of activities undertaken by Maraeroa C to develop an alternative revenue stream include the development of a tourism facility (eco- cultural tours and experiences) and the plantation of Ginseng crops to export to China. • Mäori incorporations, like ahu whenua trusts, are open to the idea of investigating joint ventures with other parties, provided they align with the objectives of the trust. For example, Maraeroa C identified that it is investigating a joint venture to establish a rotational Ginseng crop. Another example Miraka Limited, New Zealand’s first Mäori owned whole milk powder plant, which is a owned by a group of Mäori trusts and incorporations including Wairarapa Moana Incorporation, Tuaropaki Trust, Waipapa 9 Trust, Hauhungaroa Partnership, Tauhara Moana Trust and Huiarau Farms. • Mäori incorporations regularly develop, evaluate and revise three to five year strategic plans. They include future planned activities and the use of assets and resources. • Mäori incorporations typically use some of the returns from assets to leverage the skills of their people through the provision of grants. Such grants are usually in the area of education, health, cultural and sporting activities. • In recent years, large Mäori incorporations have developed websites and web-portals to keep shareholders informed. In addition to this, shareholders are kept informed via newsletters (typically biannual to quarterly) and through general meetings.

4.4 TREATY OF WAITANGI SETTLEMENT ASSETS This section investigates the components of the Mäori collectively owned asset base held by entities that have received Treaty of Waitangi settlements. Pending Treaty of Waitangi settlements in the Waikato region are also discussed as well as Mäori Fisheries Act 2004 settlement assets. Treaty of Waitangi settlement assets in the Waikato region Treaty of Waitangi settlements included in the collectively owned asset base of the Waikato region are held and managed by the Waikato Raupatu Lands Trust, Ngäti Raukawa Settlement Trust, Te Pütahitanga o Ngä Ara Trust, Ngäti Haua Iwi Trust, Taumatawiwi Trust and the Maraeroa A and B Trust. The total value of these entities in 2012 was $1 billion. Table 4.4 shows the value of these settlement entities.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Table 4.4: Settlement entity assets in the Waikato region, value as at 2012, ($m)22

Settlement entity Asset value ($m) Waikato Raupatu Lands Trust 925 Tuwharetoa Settlement Trust 70 Raukawa Settlement Trust 51 Te Pütahitanga o Ngä Ara Trust 29 Taumatawiwi Trust 3 Maraeroa A and B Trust 2 Total 1080 Source: BERL, annual reports

The asset values in Table 4.4 above are the value of the settlement asset at 2012. The asset values include the original settlement quantum (the financial and commercial redress) plus the growth in the value of these assets. For example, the Te Pütahitanga o Ngä Ara Trust received $2.7 million in 2000, and this asset has now grown to $29 million. The Taumatawiwi Trust received their asset quantum on 20 December 2012; therefore their asset value is the original settlement quantum. The Waikato Raupatu Lands Trust is the largest settlement entity in the region, accounting for 90 percent of all the assets held by treaty settlement entities, in 2012. The Waikato Raupatu Lands Trust operates in the services, property development and fishing industries. The majority of activity undertaken by Waikato Raupatu Lands Trust is through its subsidiary company, Tainui Group Holdings Limited (TGHL). TGHL had assets worth $738 million in the year ended 31 March 2013, and is largely focused on property development and investment. Treaty settlement entities have added value to settlement quantum since settlement. Collectively, the value of the assets received by these entities has grown from just under $300 million to just under $900 million. Much of this growth has come from growth in the value of assets held by the Waikato Raupatu Lands Trust. Further growth in the assets held by Treaty settlement entities is expected over the coming years through planned property development and investment. An example of this is provided by the joint venture between TGHL and Chedworth Properties to construct a $3.3 billion inland transportation port and industrial hub at Ruakura. In August 2013, the Government agreed to fast-track resource consent applications by the joint venture between TGHL and Chedworth Properties to construct the inland port. TGHL estimate that if approved, the development of the inland hub could create some 740 new permanent jobs as well as construction work during development.23 The overall asset base of Treaty settlement entities in the Waikato region is likely to also grow through the relativity clause in the Waikato-Tainui Raupatu – Lands Treaty settlement. Under this clause, which is outlined later in this section, Waikato-Tainui is entitled to claim up to, in 1994 real terms, 17 percent of the total value of settlement redress until 2044. This relativity clause was triggered in November 2012 and the Government transferred $70 million to the Waikato- Tainui Raupatu Lands Trust in December 201224 25. Waikato-Tainui can make claims for additional payments every five years.

22 For the Waikato Raupatu Lands Trust, settlement assets are for the year ended 31 March 2013. Post 2012, Ngäti Hauä received financial redress of $13 million. This financial redress has been excluded from this table and the collectively owned assets held by Mäori in the Waikato region in 2012. 23 Scoop (30 August 2013) Tainui 'inland port' proposal to be fast-tracked through board of inquiry (accessed 12 January 2014)

26 A summary of Treaty settlements in the Waikato region is provided below. Treaty settlements outlined, also include the Ngäti Hauä settlement, which occurred after 2012.26

Waikato-Tainui Raupatu - Lands (assets managed by the Waikato Tainui Raupatu Lands Trust) In 1995, Waikato-Tainui became the first iwi to reach a Treaty of Waitangi settlement with the Crown for injustices that went back to the wars and land confiscations of the 1860s. The Deed signed acknowledges that some 47,000 acres of land in the Waikato region is significant to Waikato-Tainui. In signing the settlement deed, the iwi gifts that land to the Crown so it can continue to be held for conservation, and the benefit of all inhabitants of New Zealand. The settlement quantum for Waikato-Tainui includes a combination of cash and crown owned land worth $170 million. This quantum was transferred to the Waikato Raupatu Lands Trust, set up to manage the settlement redress provided by the Crown. In addition to the $170 million redress, the Deed of Settlement also contains a relativity mechanism provision that enables Waikato-Tainui to claim additional redress if the total value of settlement redress exceeds $1 billion in 1994 present value dollars. Once triggered, Waikato-Tainui can claim up to 1994 in real terms, 17 percent of the total value of settlement redress until 2044. In 2012, total settlement redress exceeded $1 billion and the relativity mechanism was triggered. As part of the settlement, Waikato-Tainui also received a right of first refusal over certain Crown owned properties. The financial and commercial redress payment was to compensate Waikato- Tainui for economic loss arising from Crown breaches of its obligations under the Treaty of Waitangi and to give Waikato-Tainui the means to enhance the economic and social position of its members. The value of assets held by the Waikato Raupatu Lands Trust was $925 million in the year ended 31 March 2013. The majority of the assets are held by the trust’s subsidiary company Tainui Group Holdings Limited (TGHL). TGHL interests are primarily in property investment (83 percent), hotels (11 percent), fishing (five percent) and general investment (three percent). The Waikato Raupatu Lands Trust focuses on providing services (education, health, wellbeing support) to its members. An example of the type of property development undertaken by TGHL is provided by the former Te Rapa Air Force Base, one of the commercial pieces of land transferred to Waikato-Tainui as part of the settlement redress. TGHL has since developed the air base into: ‘The Base’, New Zealand’s largest shopping complex worth more than $250 million.

Waikato-Tainui Raupatu – River (assets managed by the Waikato Tainui Raupatu Lands Trust) The Crown and Waikato-Tainui signed a Deed of Settlement on 17 December 2009. As part of the settlement the Crown committed to enter into a new era of co-management over the Waikato River with Waikato-Tainui and recognised the significance of the Waikato River to Waikato-Tainui. The Crown also agreed to provide financial redress as part of the settlement in three ways. The Crown agreed to:

24 Waikato-Tainui Relativity Report (April 2013) http://www.waikatotainui.com/i/files/2013-04RelativityReport%20(2).pdf 25 At the time of preparing this report Waikato-Tainui are engaged in arbitration proceedings with the Crown regarding relativity payments. The $70 million to Waikato-Tainui is undisputed. The arbitration concerns the contest that there is still an amount owed by the Crown to the claimants under the mechanism formula. Parties are awaiting the outcome from the Arbitrator, Sir Andrew Tipping. 26 As the Ngäti Hauä settlement occurred after 2012, the financial redress of $13 million is not included in the collectively owned assets base of Mäori in the Waikato region.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 • make a contribution of $20 million to the Waikato Endowed College Trust • provide $50 million as a fund for initiatives to restore and protect the relationship of Waikato-Tainui with the Waikato River as well as the protection of relevant areas and species • provide $1 million per year for 30 years to fund the Waikato-Tainui participation in the co- governance processes of the settlement.

Central North Island Forests Iwi Collective - Tüwharetoa (assets managed by Tüwharetoa Settlement Trust) The Crown and the Central North Island Forest (CNI) Iwi Collective signed a deed of settlement on 25 June 2008. Under the settlement, the Collective, representing Ngäi Tühoe, Ngäti Tüwharetoa, Ngäti Whakaue, Ngäti Whare, Ngäti Manawa, Ngäti Rangitihi, Raukawa, and the affiliate Te Arawa iwi and hapü. The value of the Crown land transferred to the Collective was $196 million. The Collective will also receive the rentals that have accumulated on the land since 1989, which are worth approximately $223 million, and its share of the annual income stream of about $15 million. As part of the CNI Forests Collective Settlement, Ngäti Tüwharetoa received27:

• 25.9% of the accumulated rentals from the CNI Forests Land • 25.9% of the annual Crown Forest License fees ($2m-$3m per annum) • a share of three million NZUs (carbon credits) • preferential rights to buy certain Crown Assets • a share of 176,000 hectares of Central North Island forests. Ngäti Raukawa (assets managed by the Ngäti Raukawa Settlement Trust) The Crown and Ngäti Raukawa signed a Deed of Settlement on 2 June 2012. The Ngäti Raukawa settlement includes commercial redress totalling $50 million including the value of the 2008 Central North Island Forestry Settlement. The Crown gave Ngäti Raukawa $21 million while the remaining $29 million was deducted from the Central North Island Iwi Holdings account. The Ngäti Raukawa settlement also returns culturally significant sites along the Waikato River and other areas, as well as strengthening the commercial relationship, between Ngäti Raukawa and Mighty River Power. Post settlement, the Ngäti Raukawa Settlement Trust is preparing for direct investments in a number of areas including dairy, forestry and property.

Pouakani (assets managed by the Te Pütahitanga o Ngä Ara Trust) The Crown and Pouakani signed a Deed of Settlement on 19 November 1999. The settlement quantum was $2.7 million, plus the right to purchase an area of up to 1679 hectares of Pureora Central Forest, a Crown-owned exotic pine forest. The option to purchase this land was taken in 2002. The asset base of Poukani, held and managed by Te Pütahitanga o Ngä Ara Trust, has now grown to $29 million. Since settlement, a concerted effort has been made to develop and grow the

27 Tüwharetoa Settlement Trust – The Settlement, http://tst.Mäori.nz/about/the-settlement/

28 assets of the Trust to build an economic base that will provide increasing financial support and assistance to the Trust members. This has included setting up the Awhina tourism experience and entering a partnership with Titiraupenga Trust in 2003 to purchase 435.27 hectares of dairy and dry stock land adjoining the Titiraupenga Trust farmland.

Maraeroa A and B Trust (assets managed by the Maraeroa A and B Trust) The Crown and the descendants of the original owners of the Maraeroa A and B Blocks signed a deed of settlement on 12 March 2011. The total settlement quantum transferred to the Maraeroa A and B Trust from the Crown was $1.8 million. This consisted of a payment of $1.6 million commercial redress and property transferred worth $222,000.

Ngäti Korokï Kahukura (assets managed by the Taumatawiwi Trust) The raupatu claims of Ngäti Korokï Kahukura were settled through the 1995 Waikato-Tainui land settlement. This settlement addresses the claims of the whole of Ngäti Koroki Kahukura not settled by the earlier settlement. Ngäti Korokï Kahukura received a settlement quantum of $3 million and the exclusive right of first refusal over all Crown-owned properties located within a specified area for 172 years from settlement date.

Ngäti Hauä (assets managed by the Ngäti Hauä Iwi Trust) The Crown and Ngäti Hauä signed a deed of settlement on 18 July 2013. This was the final settlement of all historical Treaty of Waitangi claims of Ngäti Hauä resulting from acts or omissions by the Crown prior to 21 September 1992. As part of this settlement, Ngäti Hauä received $13 million of financial redress in 2013, and the return of culturally significant sites, such as the mountain Maungakawa, located within Te Tapui Scenic Reserve. As part of the settlement, Ngäti Hauä have the exclusive right of first refusal over 10 Ministry of Education properties, three New Zealand Police properties, one Waikato District Health Board property and one Department of Conservation property for a period of 173 years from settlement date.

FUTURE POTENTIAL TREATY OF WAITANGI SETTLEMENT ASSETS IN THE WAIKATO REGION There are currently three pending Treaty of Waitangi settlements in the Waikato region. Ngäti Tamaoho and the Hauraki collective are currently engaged in detailed negotiations with the Crown28. Ngäti Te Ata is in negotiations with the Crown towards signing an Agreement in Principle to proceed with their claim. In addition to the three pending claims in the Waikato region, the Ngäti Maniapoto Mäori Trust Board has also started discussions with the Crown, regarding the comprehensive settlement of the Ngäti Maniapoto Treaty of Waitangi claims.

MÄORI FISHERIES ACT 2004 SETTLEMENT ASSETS IN THE WAIKATO REGION The Mäori Fisheries Act 2004 came into force in September 2004. The Act implements the agreements reached by the deed of settlement in September 2002 and provides for the development of the interests of iwi in fisheries, fishing and fishing related activities. The Act does this via a framework for the allocation and management of settlement assets. Some of the settlement assets are allocated and transferred to iwi while others are managed by Te Ohu Kaimoana.

28 In November 2013 The Crown advanced the Hauraki collective $53 million to enable them to buy the Pouarua Dairy Complex farms as part of a Treaty of Waitangi settlement. The farms have about 5000 cows over 2200 hectares near Ngatea.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Each iwi receives a minimum asset package of $1 million. Iwi receive a mixture of quota; income shares in Aotearoa Fisheries Limited; and cash. The allocation is based on the length of the coastline, and the size of the population, relative to the total Mäori population as per the Mäori Fisheries Act 2004.29 The key, but not sole, requirement for receiving fisheries settlement assets is the recognition of a representative iwi organisation as a mandated iwi organisation (MIO)30. Mandated iwi in the Waikato region are: Waikato, Maniapoto, Hauraki and Ngäti Raukawa. Table 4.5 shows the allocation of fishery assets by mandated iwi organsiation in the Waikato region.

Table 4.5: Allocated fishery assets in the Waikato region, value 2012, ($m) Iwi Mandated Iwi organisation Allocated assets ($m) Waikato Tainui Group Holdings Limited 33.0 Ngati Tuwharetoa Ngati Tuwharetoa Fisheries Holdings Limited 18.8 Maniapoto Maniapoto Maori Trust Board 11.8 Hauraki Iwi of Hauraki 7.9 Raukawa Raukawa Fisheries Limited 5.3 Total 76.8

Source: Te Ohu Kai Moana, Annual reports

The value of fishery assets held by MIOs in the Waikato region in 2012 was near $77 million. Tainui Group Holdings Limited (TGHL) accounted for 43 percent of this figure. TGHL’s quota investment of $20 million provides an annual return of 7.3 percent to the group. TGHL has also established an asset holding company alliance with Ngäti Raukawa and Ngäti Maniapoto, to lease out the aggregated quota, held by the three iwi.

CAVEATS TO THIS ASSESSMENT Our assessment of the identified Mäori land incorporation blocks and ahu whenua trusts draws on asset values, and activities that are known. Values of trusts and incorporations, where assets are not known, have been imputed using a series of ratios (see Section 9 for more information). As a result, the information highlighted in this report, is largely from well known, prosperous businesses. Information on these incorporations and ahu whenua trusts is readily available, again, indicating their business standing and success in operating in the area under study. Other incorporations and ahu whenua trusts that are operating in farm and forestry ventures, are likely to be of a lower value, as they are less well known and the information is not as readily available. It is not known how much of the quantum of the total land in the Waikato region is marginal land or the productive uses of the remaining blocks identified in the annual report review and interviews. While able to give an indication of the total amount of land held by Mäori land incorporations and ahu whenua trusts; the total number of Mäori land incorporations and ahu whenua trusts in the region; and the average number of hectares per incorporation or trust; detailed information on whether this land is productive or marginal, is not provided.

29 For further information see Te Ohu Kaimoana http://teohu.Maori.nz 30 When a recognised iwi organisation has met the governance criteria set out in the Mäori Fisheries Act it is entitled to receive fisheries assets as the mandated iwi organisation for that iwi. There can be only one mandated iwi organisation per iwi.

30 5 ASSETS OF MÄORI BUSINESSES Mäori businesses (businesses run by employers and the self-employed) contribute $3.3 billion (54 percent) to the overall Mäori asset base of the Waikato region.

ECONOMIC CONTRIBUTION BY MÄ ORI TO THE WAIKATO REGION

ASSETS BUSINESSES PEOPLE

COLLECTIVELY ASSETS OF OWNED ASSETS BUSINESSES

This section outlines the contribution of businesses run by Mäori employers31 (with employees) and self- employed (without employees) Mäori32 make to the overall Mäori asset base of the Waikato region.

5.1 MÄORI BUSINESSES CONTRIBUTION TO WAIKATO ASSET BASE Assets of Mäori businesses contributed an estimated $3.3 billion to the asset base of the Waikato economy in 2012. Assets of Mäori businesses owned by Mäori (employers with employees) accounted for $2.6 billion or 80 percent of the overall contribution of businesses to the Mäori asset base in the Waikato region. Mäori entrepreneurial assets, the assets of self-employed (without employees), contributed the remaining $668 million or 20 percent. The majority of the assets in Mäori businesses in the Waikato region are in the agriculture, forestry and fishing (23 percent) and property & business services (20 percent) industries. Table 5.1 provides a breakdown of Mäori businesses in the Waikato region.

Table 5.1: Mäori employer and self-employed enterprises: Waikato, 2012, Industry Self-employed % of Employers % of Total Number Total Number Total Agriculture, Forestry and Fishing 218 64% 125 36% 343 Mining - - - - - Manufacturing 89 63% 54 37% 143 Electricity, Gas and Water Supply - - - - - Construction 223 59% 156 41% 379 Wholesale Trade 46 64% 25 36% 72 Retail Trade 112 57% 84 43% 196 Accommodation, Cafes and Restaurants 38 44% 48 56% 86 Transport and Storage 54 62% 33 38% 87 Communication Services 38 83% 8 17% 46 Finance and Insurance 13 65% 7 35% 21 Property and Business Services 215 71% 89 29% 304 Government Administration and Defence - - - - - Education 54 78% 15 22% 69 Health and Community Services 71 74% 25 26% 96 Cultural and Recreational Services 60 82% 13 18% 73 Personal and Other Services 79 70% 33 30% 112 Not Elsewhere Included 120 77% 36 23% 156 Total All Industries 1431 66% 750 34% 2182 Source: BERL

31 People who are employers that identify their ethnicity as Mäori. 32 People who are self-employed that identify their ethnicity as Mäori.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 5.2 MÄORI BUSINESS ASSETS OWNED BY EMPLOYERS This section focuses on the assets of people who identified themselves as an employer (with employees) identifies themselves as being of Mäori ethnicity. Our estimates indicate that there were 750 businesses that were operated by Mäori employers (with employees) in the Waikato region in 2012. The asset value of these businesses equates to $2.6 billion, or 80 percent of all assets held by Mäori businesses (i.e., assets owned by employers and self-employed) in the Waikato region. Table 5.2 provides an overview of the number of Mäori employers (with employees) in the Waikato region by industry and the corresponding estimated asset value of these businesses.

Table 5.2: Mäori employer (with employees) count and the asset value of these businesses by industry for the Waikato region, 2012 ($m)

Employers by Industry Employers % of Employer Assets % of

Count Total Assets ($m) Total Agriculture, Forestry and Fishing 125 17% 517 20% Mining 0 0% 0 0% Manufacturing 54 7% 320 12% Electricity, Gas and Water Supply 0 0% 0 0% Construction 156 21% 124 5% Wholesale Trade 25 3% 110 4% Retail Trade 84 11% 153 6% Accommodation, Cafes and Restaurants 48 6% 37 1% Transport and Storage 33 4% 206 8%

Communication Services 8 1% 139 5%

Finance and Insurance 7 1% 165 6%

Property and Business Services 89 12% 503 19% Government Administration and Defence 0 0% 0 0% Education 15 2% 146 6% Health and Community Services 25 3% 45 2% Cultural and Recreational Services 13 2% 98 4% Personal and Other Services 33 4% 0 0% Not Elsewhere Included 36 5% 85 3% Total All Industries 750 100% 2,649 100%

Source: BERL Mäori employers in the Waikato region in 2012 were concentrated in the construction (21 percent of all employers), agriculture, forestry & fishing (17 percent), property & business services (12 percent) and retail trade (11 percent) industries. The largest industries with assets held by Mäori in the Waikato region in 2012 were agriculture, forestry and fishing (20 percent of Mäori businesses in the Waikato region); property & business services (19 percent); and manufacturing (12 percent). The number of employers in an industry is not necessarily correlated to the value of assets held in that industry. For example, despite making up 21 percent of all Mäori employers in the Waikato region, the value of assets owned by businesses run by Mäori in the construction industry made up five percent of all Mäori employer assets in 2012.

32 Similarly, Mäori employers in property & business services businesses in the region made up 12 percent of overall employment in the region, but the value of these assets as a percentage of all Mäori assets held by employers in businesses in the region was 19 percent.

5.3 MÄORI ENTREPRENEURIAL ASSETS This section looks at the assets held by Mäori who are self-employed (without employees) who identify themselves as being of Mäori ethnicity. Estimates are there were over 1,400 Mäori self-employed (without employees) entrepreneurs in Waikato region in 2012. The asset value of these entrepreneurs is approximately $668 million or 20 percent of all assets held by Mäori businesses (i.e., assets owned by employers and self-employed). Table 5.3 provides an overview of the number of Mäori self-employed in the Waikato region by industry and the corresponding asset value of these entrepreneurial enterprises.

Table 5.3: Mäori self-employed (without employees) count and asset value of these enterprises by industry for the Waikato region, 2012 ($m) Employers by Industry Self-employed % of Self-employer % of Count Total Assets Total Assets ($m) Agriculture, Forestry and Fishing 218 15% 249 37% Mining 0 0% 0 0% Manufacturing 89 6% 32 5% Electricity, Gas and Water Supply 0 0% 0 0% Construction 223 16% 39 6% Wholesale Trade 46 3% 16 2% Retail Trade 112 8% 24 4% Accommodation, Cafes and Restaurants 38 3% 3 0% Transport and Storage 54 4% 27 4% Communication Services 38 3% 30 4% Finance and Insurance 13 1% 6 1% Property and Business Services 215 15% 154 23% Government Administration and Defence 0 0% 0 0% Education 54 4% 7 1% Health and Community Services 71 5% 5 1% Cultural and Recreational Services 60 4% 41 6% Personal and Other Services 79 5% 0 0% Not Elsewhere Included 120 8% 37 5% Total All Industries 1431 100% 668 100% Source: BERL

In 2012, almost half of all self-employed Mäori in the Waikato region worked in the construction (15 percent); agriculture, forestry & fishing (15 percent); and the property and business services (15 percent) industries. The assets of entrepreneurs in the agriculture, forestry and fishing, and property and business services industries, made up 60 percent of the total Mäori entrepreneurial asset value in the Waikato region.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 6 BUSINESSES

In 2012, Mäori businesses contributed $1.4 billion to the GDP of the Waikato region. This represents an 8 percent contribution to the total GDP of the Waikato region ($17.0 billion).

ECONOMIC CONTRIBUTION BY MÄ ORI TO THE WAIKATO REGION

ASSETS BUSINESSES PEOPLE

It is estimated the Mäori businesses generated more than $10.6 billion in value added33 in the New Zealand economy in 2012. Mäori contribution to New Zealand’s economy has steadily increased over the past two decades. This section looks at the contribution of the Mäori economy in Waikato region in terms of value added GDP. This is done by examining: • key industries for Waikato Mäori; • the contribution of Mäori GDP to overall GDP in the Waikato region; • the contribution by Mäori to GDP by district in the Waikato region; and • the contribution of Waikato Mäori GDP to New Zealand Mäori GDP.

6.1 KEY INDUSTRIES FOR WAIKATO MÄORI At $1.4 billion, Waikato Mäori businesses accounted for just over 13 percent of total Mäori value added GDP, in 2012. Mäori enterprises that made a strong contribution to overall Mäori valued add in the Waikato region in 2012 were in the health and community services (19 percent of overall Mäori GDP in the Waikato region); property and business services (16 percent); manufacturing (11 percent); and agriculture industries (nine percent). Table 6.1 shows GDP by Mäori businesses in the Waikato region, in relation to total GDP by Mäori businesses in New Zealand, by industry.

33 GDP is calculated via the production account through the value added of individual industries or businesses/enterprises.

34 Table 6.1: Share of Mäori value-added34 in the Waikato region, 2012 ($m)

Waikato value added by industry, $m Waikato New % share of Waikato Zealand to NZ Mäori GDP Agriculture 120 757 16% Forestry 82 577 14% Fishing 5 88 5% Mining 1 2 36% Manufacturing 150 1031 15% Elect, gas & water 8 43 20% Construction 79 568 14% Wholesale trade 30 282 10% Retail trade 56 427 13% Accommodation 28 187 15% Transport 57 568 10% Communications 59 527 11% Finance services 32 413 8% Property and business services 214 1810 12% Education 109 759 14% Health and Community Services 266 1892 14% Cultural and Recreational Services 33 306 11% Personal and Other Services 50 412 12%

Total Mäori GDP 1377 10649 13%

Note: Excludes gov't administration and defence Source: BERL

6.2 CONTRIBUTION OF MÄORI GDP TO OVERALL GDP IN THE WAIKATO In 2012, Mäori businesses contributed $1.4 billion to the GDP of the Waikato region. This represents an 8 percent contribution to the total GDP of the Waikato region. The fishing industry in the Waikato region is relatively small compared to other industries in the region. In 2012, the Mäori fishing industry in the region`, contributed approximately $5 million. This represents 39 percent of the overall GDP from the fishing industry in the Waikato region. Other industries where Mäori businesses make significant contributions to the GDP of the Waikato region are health and community services (23 percent of GDP in this industry); personal and other services (19 percent); forestry (17 percent); education (16 percent); and cultural and recreational services (15 percent). Figure 6.1 illustrates Mäori share of GDP by industry in the Waikato region in 2012.

34 Value-added (or GDP) is a measure of output of final goods & services produced in an economy in a given year/period.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Figure 6.1: Mäori GDP share of industry in the Waikato region, 2012 Waikato value added by industry (2012 $m)

Fishing Health and Community Services Personal and Other Services Forestry Education Cultural and Recreational Services Communications Accommodation Construction Transport Finance services Agriculture Manufacturing Retail trade Property and business services Wholesale trade Elect, gas & water Mining

0% 20% 40% 60% 80% 100%

Maori Note: Excludes gov't administration and defence Rest of Waikato Source: BERL

6.3 CONTRIBUTION BY MÄORI TO GDP BY DISTRICT IN THE WAIKATO In 2012, Mäori businesses in Hamilton city contributed 34 percent of the overall GDP of the Waikato region. . Figure 6.2 below presents the contribution of Mäori to GDP by district.

Figure 6.2: Distribution of Mäori GDP by district in the Waikato region, 2012

Thames-Coromandel District Taupo District 6% Hauraki District 14% 3%

Waikato District Waitomo District 13% 4%

South Waikato District 9% Matamata-Piako District 5% Otorohanga District 3%

Waipa District 9%

Hamilton City 34%

36 Figure 6.3 shows Mäori value added for the districts in the Waikato region by industry.

Figure 6.3: Mäori value added for the districts in the Waikato region by industry, 2012

Source: BERL

Mäori in Hamilton city are the largest contributors to the Waikato region Mäori economy. In 2012, Mäori businesses in Hamilton city contributed $472 million (34 percent) to the total Mäori GDP of the Waikato region. This contribution came largely from activities in the health & community services ($115 million); property & business services ($92 million); manufacturing ($45 million); and

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 education ($44 million) industries. In 2012, these industries made up just over 60 percent of the total Mäori GDP in Hamilton city, and 21 percent of overall Mäori GDP in the Waikato region. In 2012, Mäori businesses in the Taupö district were the second biggest contributor to the Mäori economy within the Waikato region, contributing $192 million (14 percent) to total Mäori GDP. This contribution came largely from activities in forestry ($40 million); health and community services ($23 million); and agriculture ($20 million). The Waikato district made up 13 percent of the Mäori economy in the Waikato region in 2012. This contribution was largely from health and community services ($35 million) and property and business services ($35 million). The contribution of Mäori to the economy in South Waikato district ($127 million); Waipä district ($20 million); Thames-Coromandel district ($79 million); Matamata-Piako district ($65 million); Waitomo district ($61 million); Hauraki district ($49 million); and Ötorohanga district ($39 million); largely reflected those of the Waikato region. Noticeable industry GDP variations within the districts of the Waikato in 2012 include:

• the high contribution of the Mäori agriculture industry to the overall Mäori economy in eight of the 10 districts. The contribution of the Mäori agriculture industry to the economy of the Otorohanga district was the largest (26 percent of the Mäori economy in Ötorohanga district); and smallest in Hamilton city (2 percent) • the high contribution of Mäori forestry industry to Mäori economy in the South Waikato district (23 percent of Mäori economy in the South Waikato district); and in the Taupo district (22 percent) • the high contribution of Mäori manufacturing industry to Mäori economy in the Matamata- Piako district (20 percent contribution to the district’s economy); Waitomo district (18 percent); and Hauraki district (16 percent) • the high contribution of Mäori health & community services industry to Mäori economy in the Waipa district (27% percent contribution Mäori economy in the Waipa district).

38 Table 6.2: Mäori value added for the districts in the Waikato region by industry, 2012 ($m)

Mäori value added Thames- Hauraki Waikato Matamata- Hamilton Waipa Otorohanga South Waitomo Taupo Waikato by industry, $m Coromandel District District Piako City District District Waikato District District Region District District District Agriculture 6 8 17 11 9 14 10 15 10 20 120 Forestry 8 0 0 0 0 0 0 29 3 42 82 Fishing 4 0 0 0 0 0 0 0 0 1 5 Mining 0 0 0 0 0 0 0 0 0 0 1 Manufacturing 9 8 19 13 45 8 4 18 11 16 150 Electricity, Gas 0 0 2 0 2 1 0 1 0 1 8 and Water Supply Construction 6 3 12 3 28 7 2 4 3 10 79 Wholesale Trade 2 1 5 1 14 3 1 1 1 2 30 Retail Trade 5 2 5 3 20 4 2 5 2 7 56 Accommodation, 3 1 3 1 9 1 1 2 2 7 28 Cafes and Restaurants Transport and 2 2 8 4 18 6 2 5 2 8 57 Storage Communication 2 3 6 1 33 5 1 2 2 5 59 services Finance services 1 1 4 2 15 3 0 2 1 3 32 Property services 9 6 33 8 92 17 5 15 9 19 214 Education 5 3 16 4 44 10 2 9 4 12 109 Health & 14 9 35 10 115 32 6 14 9 23 266 Comm'y Services Cultural & Rec 2 0 3 2 13 3 1 2 1 6 33 Services Personal & Other 3 1 6 2 18 5 2 4 1 10 50 Services Total 79 49 173 65 472 120 39 127 61 192 1377

Note: Excludes gov't administration and defence Source: BERL

6.4 CONTRIBUTION OF WAIKATO MÄORI GDP TO NEW ZEALAND MÄORI GDP Mäori GDP in the Waikato region in relation to total Mäori GDP is relatively high in mining (36 percent); electricity, gas and water (20 percent); agriculture (16 percent); manufacturing (15 percent), and accommodation (15 percent).

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 7 PEOPLE

Average and median weekly income for Mäori in the Waikato region is similar to that of Mäori nationally. However, compared to non-Mäori in the Waikato region, Mäori average weekly in- come is $189 (25 percent) less per week and median weekly income is $105 (18 percent) less per week.35 Like their counterparts nationally, Mäori households spend more than they earn.

ECONOMIC CONTRIBUTION BY MÄ ORI TO THE WAIKATO REGION

ASSETS BUSINESSES PEOPLE

This section describes Mäori in terms of employment in the Waikato region. It describes the industries that employ Mäori, provides information on income earned by Mäori and takes a look at Mäori household income and expenditure.

7.1 MÄORI EMPLOYMENT BY INDUSTRY IN THE WAIKATO REGION In 2012, Mäori made up 25 percent of total people employed in the Waikato region, with just over 42,100 Mäori employed across a number of industries. The manufacturing, retail trade, construction, health & community services, property and business services, agriculture and education industries account for just over 70 percent of Mäori employment in the Waikato region. Many of these industries offer lower earning potential and relatively fewer skilled occupation opportunities. The overall distribution of Mäori employment in the Waikato region by industry is illustrated in Figure 7.1.

Figure 7.1: Distribution of Mäori employment by industry in the Waikato region, 2012

Fishing Forestry Elect, Gas & Water Supply Mining Finance & Insurance Communication Services Cultural & Rec Services Govt Admin & Defence Wholesale Trade Transport & Storage Personal & Other Services Accom, Cafes & Restaurants

Employment 2012 (FTEs) Employment 2012 Agriculture Education Prop & Business Services Health & Comm'y Services Construction Retail Trade Manufacturing 0% 2% 4% 6% 8% 10% 12% 14% 16% Maori

35 Income received before tax from all sources, such as wages, salary, self-employment, government transfers, private superannuation and pension schemes, annuities and investment income. Average weekly income is the total of weekly income for the working-age population, divided by the working-age population. Median weekly income is the middle point of the distribution of weekly income. For example, if there were 99 people, the median weekly income would be the weekly income of the fiftieth person when people are ranked by weekly income.

40 7.2MÄORI EMPLOYMENT BY DISTRICT IN THE WAIKATO REGION In 2012, 34 percent of all Mäori employment in the Waikato region was in Hamilton city. A further 26 percent of employment in the Waikato region was in Waikato and Taupo districts, each with 5,500 people employed. Table 7.1 summarises Mäori employment by district in the Waikato region. Table 7.1: Mäori employment by district and industry (Waikato region), 2012

Mäori employment Thames- Hauraki Waikato Matamata- Hamilton Waipa Otorohanga South Waitomo Taupo Waikato 2012 (FTEs) Coromandel District District Piako City District District Waikato District District Region District District District Agriculture 173 231 507 340 265 420 308 467 319 612 3641 Forestry 16 0 1 0 0 1 0 57 5 84 164 Fishing 28 1 0 0 0 0 0 0 0 6 36 Mining 10 34 127 15 54 10 10 5 88 44 394 Manufacturing 405 362 859 584 2066 386 179 845 507 724 6917 Elect, Gas & 10 10 47 0 58 16 5 16 10 26 199 Water Supply Construction 327 171 634 185 1506 390 93 234 141 541 4222 Wholesale Trade 94 35 243 65 690 129 30 45 35 119 1485 Retail Trade 386 179 430 241 1584 357 169 372 184 579 4481 Accom, Cafes & 267 62 257 76 886 152 81 171 171 757 2881 Restaurants Transport & 55 55 232 121 499 161 45 126 65 227 1587 Storage Communication 20 25 54 10 315 44 10 20 15 49 561 Services Finance & 20 20 61 25 233 46 5 25 20 46 501 Insurance Prop & Business 160 102 562 140 1564 295 87 262 145 324 3642 Services Govt Admin & 38 43 172 53 704 105 14 53 34 96 1313 Defence Education 155 102 538 131 1444 315 82 305 141 392 3605 Health & Comm'y 191 129 482 139 1600 454 91 191 119 315 3711 Services Cultural & Rec 54 15 83 49 370 83 34 63 44 166 960 Services Personal & Other 95 52 214 57 636 185 57 128 33 347 1805 Services Total 2505 1627 5502 2231 14474 3550 1300 3384 2077 5455 42105

Hamilton city employs a significant proportion of the Mäori population in the Waikato. The largest share of Mäori employment in Hamilton is in manufacturing (14 percent); followed by health and community services; retail trade; and property and business services (11 percent each; and construction and education (10 percent each). This differs from the rest of the Waikato region where there are considerably lower proportions of Mäori employed in health and community services; property and business services; and education. Another notable difference, is that only two percent of Mäori employment in Hamilton is in agriculture, compared to 12 percent in the rest of the Waikato region. Most other districts have a broadly similar distribution of Mäori employment by industry, with the largest share of Mäori employment being in manufacturing, followed by agriculture and either construction or retail. The notable exceptions to this are:

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 • the Otorohanga district where employment is dominated by agriculture with 24 percent of Mäori employment in the industry • the Taupö district where the largest share of Mäori employment is in accommodation, cafes and restaurants (14 percent) • the Waipa district where health & community services made up the largest share of Mäori employment (13 percent).

Figure 7.2 summarises Mäori employment for the districts in the Waikato region by industry.

Figure 7.2: Mäori employment for the districts in the Waikato region by industry

Source: BERL

42 7.3 INDIVIDUAL INCOME Average and median weekly income for Mäori in the Waikato region is similar to that of Mäori nationally. However, compared to non-Mäori in the Waikato region, Mäori average weekly income is $189 (25 percent) per week less and median weekly income is $105 (18 percent) less per week. The national Mäori average weekly income in 2012 was $582. This was 27 percent ($160) lower than the 2012 average weekly income for non- Mäori. In 2012, the Mäori average weekly income in the Waikato region was $575. This was $7 less than the Mäori average weekly income in New Zealand ($582). And 25 percent ($189) less than the non-Mäori average weekly income ($764) in the Waikato region. Nationally, average weekly income for Mäori in 2012 was 22 percent lower than that for non- Mäori. In 2012, Mäori median weekly income in the Waikato region was $463, $12 lower than national Mäori median weekly income. Mäori weekly income was 18 percent ($105) lower than non-Mäori weekly income in the Waikato region.

7.4 MÄORI HOUSEHOLD INCOME AND EXPENDITURE Mäori household income The majority of Mäori household income36 in the Waikato region is from paid employment. Figure 7.3 provides a breakdown of household income for the Waikato region by source.

Figure 7.3: Mäori household income for the Waikato Region

Interest, Pension fund earnings and insurance Overseas transfers receipts 0.5% Operating Surplus in 3% Owner-occupied dwellings 7%

Entrepreneurial and Dividend Income 8%

Social Security and Wages and Salaries Assistance Benefits 61% 21%

36 Income includes wages, salary, self-employment, government transfers, private superannuation and pension schemes, annuities and investment income

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 At 61 percent, wages and salaries make up the largest slice of the Mäori household income while entrepreneurial income made up 8 percent of Mäori household income in the region. The second major source of income for Mäori households in the Waikato region was social security and assistance benefits. The Government contributed 21 percent to Mäori household income, the same percentage it contributes to Mäori households nationally. In December 2012, 15,941 working-age Mäori were recipients of a main benefit (44.5 percent of the total working aged recipients in the Waikato region); 2,610 of who were receiving unemployment benefits (51.4 percent of the total unemployment benefit in the region). Mäori are a youthful population group. In the 2013 Census the median age of Mäori nationally (half are older, and half are younger, than this age) was 23.9 years. This compares with 22.7 years in 2006.

Mäori household expenditure Mäori households in the Waikato region spend the majority of their income on consumer goods and services. Of total Mäori household expenditure in the Waikato region, 75 percent of the total expenditure was on consumer goods and services, including durable goods. The second biggest outlay was income taxes, social security contributions, and fines and penalties, which made up 15 percent of total Mäori household spending in the Waikato. Pension fund contributions and overseas transfers make up a minor part of household spend. Figure 7.4 below breaks down household spending in the Waikato region.

Figure 7.4: Mäori household outlays for the Waikato region

Pension Fund Contributions 1% Overseas Investment in Owner Transfers 0.3% Occupied Dwellings 4% Interest on Consumer Debt and housing 5%

Income and other Tax, Social Security Contributions, Fines and Penalties 15%

Consumer Expenditure 75%

44 While the biggest outlays for Mäori households nationally are consumer goods and services, income taxes, social security contributions, fines and penalties, the proportion of overall outlays for Mäori households in the Waikato region differ in the following ways:

• Mäori households in the Waikato region spent less on consumer goods (75 percent versus 78 percent nationally) • Mäori households in the Waikato region had greater outlays on income taxes, social security contributions, fines and penalties (15 percent versus 12 percent nationally).

Mäori household savings Mäori households in the Waikato region experience dissavings and spend their income on immediate consumer goods and services at the expense of long term investment opportunities. Table 7.2 shows that in 2010 Mäori households in the Waikato region had dissavings of $326 million.

Table 7.2: Mäori household income and outlays in the Waikato region, 2010 ($m)37 Mäori household income and outlays ($m) Waikato Income % share of Mäori Waikato to Maori Total Wages and salaries 1194 Social security and assistance benefits 418 Entrepreneurial and dividend income 152 Operating surplus in owner-occupied dwellings 132 Interest, pension fund earnings and insurance receipts 54 Overseas transfers 10 Sub-total 1960 Less Outlays Consumer expenditure 1707 Income and other tax, social security contributions, fines 338 and penalties Interest on consumer debt and housing 122 Investment in owner-occupied dwellings 91 Pension fund contributions 21 Overseas transfers 6 Sub-total 2286 Net savings -326

Source: BERL

Dissavings (a savings deficit) by Mäori households in the Waikato region are reflective of Mäori households nationally. Work undertaken for the Mäori Economic Taskforce in 2011 showed that Mäori and other (non- Mäori) households nationally had net dissavings.

37 Operating Surplus in owner occupied dwellings is the income accruing from ownership of owner-occupied dwellings

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 8 CONCLUSION

This situational analysis highlights that Mäori play a significant role in the Waikato economy through participation in the workforce, contribution to GDP, and ownership of assets. Mäori businesses generated $1.4 billion in value added in the Waikato region in 2012. . This represents an eight percent contribution to the total GDP of the Waikato region. Waikato Mäori had a strong asset base worth an estimated $6.2 billion in 2012. This asset base is largely concentrated in the agriculture; forestry and fishing (28 percent of the Mäori asset base in the Waikato region); property and business services (23 percent); and manufacturing (15 percent) industries. A significant proportion of the Waikato Mäori asset base is generated by Mäori employment through wages and flow-on consumption. This report does however, highlight that Mäori employment in the Waikato region is largely concentrated in low paid and low productivity industries, such as manufacturing (16 percent); retail trade (11 percent); and construction (10 percent). Collectively owned assets held by Mäori in the Waikato region make up $2.9 billion of the total Mäori asset base in the region. The collectively owned asset base of the region is expected to grow over the coming years. This will result from further Treaty of Waitangi claim settlements and as Waikato-Tainui receive additional financial redress through the redress mechanism that has been triggered. This additional growth, coupled with ahu whenua trusts, incorporations and treaty settlement entities diversifying operations, seeking additional alternative revenue sources from their land, and joint venture opportunities, mean that Waikato Mäori are increasingly likely to play a key part in shaping economic development in the region. The extent to which the Mäori asset base in the Waikato region is likely to grow over the coming years is, therefore, likely to be strongly influenced by the ability of Mäori ahu whenua trusts, incorporations, and trusts to diversify their activities; and the ability of Mäori to gain a greater share of employment in more skilled and productive industries.

46 APPENDIX: METHODOLOGY AND DEFINITIONS

MÄORI ASSET BASE To estimate the Mäori Asset base in the Waikato region in 2012, BERL drew on, and updated, the Mäori asset base it developed for the Mäori Economic Taskforce in 2011. Further detail for each subsection is provided below which highlights where changes or updates were made for this report.

COLLECTIVELY OWNED ASSETS The asset base of Mäori Trusts, Incorporations, Organisations, Boards, PSGEs, and Iwi/Rünanga holding companies was developed in 2011 to generate estimates of the collectively owned assets held by Mäori. The following data sources were used to generate these estimates:

• Annual Reports/ Internal Organisation Reports/ Interviews/ Personal Communications. • Activity, asset holdings and income of Mäori Trusts, Incorporations, Organisations, Boards, PGSEs, MIOs and Holding Companies. • Mäori Land Court. • Size of land holdings and values of Mäori Trusts and Incorporations. • Te Puni Kökiri (TPK). • Main activity, value of assets, income, expenditure and rohe of Top 30 Mäori entities. • Department of Internal Affairs - Charities data • Value of assets, income, expenditure, main activity and rohe of registered charitable organisations active in the Mäori economy.

By combining the information from these data sources along with information from previous reports and studies, the report was able to identify the 2010 asset value of 418 records. For the 5,488 records of assets that could not be confirmed, their values were imputed using conservative assumptions. The approach taken to impute asset values is outlined fully in BERL’s (2011) ‘The Asset Base, Income, Expenditure and GDP of the 2010 Mäori Economy’ report for Mäori Economic Taskforce. Updating the collectively owned asset base for the Waikato region Since the collectively owned asset base was developed, it has been updated as required on an area- by-area basis, mostly as part of work undertaken for the Bay of Connections. Updating the asset base involved a line by line review of collective assets for the Bay of Connections rohe, using the same data sources used to develop the collective asset base. This provided a 2010 collective asset base that was more reflective of the Bay of Connections rohe and, where appropriate, enabled the activities of entities to be updated or adjusted.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Building on the work undertaken for the Bay of Connections rohe, a similar approach was undertaken to update the collective asset base for the Waikato region. Key differences included:

• Updating, where possible, asset values for the Waikato region with 2012 total asset values. Collective asset values outside of the Waikato region were not updated beyond existing 2010 values. • Including treaty claim settlements that occurred in the Waikato region after 2010. This information was sourced from the Office of Treaty Settlements. Treaty settlement claims that occurred outside the Waikato region after 2010 were not added to the asset base.

The resulting contribution of the Mäori collective asset base in the Waikato relative to the total Mäori collective asset base in New Zealand is therefore likely to be larger than is actually the case. We recommend caution when interpreting comparisons between Mäori collectively owned asset base in the Waikato region to the total Mäori collective asset base. Assets of Mäori businesses (employers and self-employed) The same approach was used to estimate the asset value of Mäori businesses (employers and self-employed) as was undertaken in ‘The Asset Base, Income, Expenditure and GDP of the 2010 Mäori Economy’. The only difference in the approach used in this report and the approach outlined in ‘The Asset Base, Income, Expenditure and GDP of the 2010 Mäori Economy’ is this report uses 2012 data, rather than 2010 data. This approach was used at the New Zealand and the Waikato regional council area level. This general method builds from information on the average value of assets per employee, a proxy for the capital-labour ratio, multiplied by the number of employees in these enterprises. This calculation is undertaken at the disaggregated industry level. An adjustment is made to incorporate the difference in value of assets held in Mäori enterprise compared to those in other enterprises. This difference is measured by proxy, using the mean income of Mäori employers, compared to the mean income of all employers. Again, this adjustment is undertaken at the disaggregated industry level. This difference is measured by proxy using the mean income of Mäori employers compared to the mean income of all employers; again this adjustment is undertaken at the disaggregated industry level. Assets in enterprises associated with Mäori employers and self-employed Mäori can be stated as the number of:

• Mäori employers, multiplied by the ratio of employees to employers, multiplied by total assets per employee, multiplied by the ratio of the income of Mäori employers to the income of all employers. • Mäori self-employed (without employees), multiplied by the total assets per employee, multiplied by the ratio of the income of self-employed Mäori to the income of all self- employed persons.

48 Data sources Data sources used to calculate the assets of Mäori employers and self-employed include:

• Statistics New Zealand 2006 Census Data. • Number of self-employed, employers and employees by industry, by ethnicity. • Mean average incomes of employers and self-employees industry, by ethnicity. • Statistics New Zealand Household Labour Force Survey (HLFS) (December 2012 and previous). • Growth in number of self-employed, employers and employees. • Growth in total employment by industry. • Statistics New Zealand Annual Enterprise Survey (AES) (2012 and previous). • Total assets by industry (by top-level Australian and New Zealand Standard Industrial Classification (ANZSIC) categories). • Statistics New Zealand Business Demography Statistics (2012 and previous). • Employment count by detailed ANZSIC categories. • Statistics New Zealand Capital Goods Price Index (CGPI) (2012 and previous).

Specific data sources and how they were used are discussed below:

Asset per employee This calculation was derived using Statistics New Zealand’s AES. The AES provides data on the total assets of enterprises for each industry at the ANZSIC Division level of disaggregation. However, this survey has limited information on the ethnicity of those active in these enterprises. Latest AES data was available for the 2012 financial year. Employee numbers are derived from Statistics New Zealand Business Demography Statistics. This Survey provided employee count numbers by industry at the ANZSIC Division level for March 2012. However, this survey has no information on the ethnicity of the employees. Appropriate growth rates in employment using data from Statistics New Zealand HLFS was applied to the March 2012 figures to generate employee numbers by industry for 2012.

Number of Mäori employers and self-employed Mäori This data was derived from Statistics New Zealand 2006 Census information, which explicitly identifies ethnicity of individuals, their labour force status, and the industry in which they are active. This information is collated at the relevant ANZSIC 1996 v4.1 Division level. This 2006 data was updated to 2012 using information from the HLFS. Growth in the number of employers and self-employed, at the all industry level, was used for this purpose.

Average employees per enterprise To identify the average number of employees per enterprise, a combination of Census and HLFS data is used. 2006 Census data distinguishes by industry, different employees per enterprise

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 ratios. Further, HLFS figures indicate a noticeable increase in this ratio from 2006 to 2012. To incorporate this influence, HLFS growth figures were applied to employer and employee numbers by industry to generate 2012 ratios. To combine the superior coverage of the Census data, with the timeliness of the HLFS information, the ratio we adopt in each industry is the average of the 2006 Census ratio and the ratio updated using 2012 HLFS data.

Mean income This data was sourced directly from 2006 Census information. Personal income, disaggregated by ethnicity, labour force status and industry was used

Special industries Four of 17 industries were treated differently to the process outlined above. For the mining & quarrying, electricity, gas and water, and government administration and defence industries, we assume there are no assets in enterprises associated with Mäori employer or self-employed Mäori in these industries. We have excluded government administration and defence from these calculations as this is not an industry in which assets can be invested by private entrepreneurs. We also exclude the mining and quarrying and the electricity, gas & water industries as they are capital (asset) intensive sectors with high initial set up costs. Consequently, we believe these are also not readily accessible to individual entrepreneurs. In the case of the finance and insurance industry an alternative method is adopted. An alternative is necessary because the total assets figure obtained from the AES data includes banking sector loans. As a result this measure cannot be used to derive the value of assets underpinning enterprises in this industry. Consistent with previous approaches, we assume the mean annual individual income derived by Mäori employers and self-employed Mäori in this industry is equivalent to a 10 percent return on total assets. The relevant formula for enterprises associated with Mäori employers in this industry is best summarised as:

• Mäori employers, multiplied by the employee per enterprise ratio, multiplied by 10, multiplied by the mean annual income of Mäori employers in the industry. • self-employed Mäori, multiplied by 10, multiplied by the mean annual income of self- employed Mäori in the industry.

BUSINESS To estimate Mäori contribution to the GDP of the Waikato region and New Zealand in 2012, the BERL Computable General Equilibrium (CGE) is used. This is an “economy wide” model as it describes the motivations and behaviour of all producers and consumers in an economy and the linkages among them. It depicts firms that respond to demand by purchasing inputs and hiring workers and capital equipment. The income generated from sales of firms’ output ultimately accrues to households, who spend it on goods and services, taxes and saving. Tax revenue and savings lead to government and investor spending.

50 The combined demand by private households, government, and investors is met by firms who, to complete the circular flow of income and spending. The Mäori contribution to the Waikato economy was calculated using the GDP contribution separately within the CGE model.

EMPLOYMENT Using both the 2006 Census and the BERL Regional Database, we are able to provide an estimate of the likely profile of the Mäori labour market in 2012. By using this Regional Database in 2012, the estimate of total Mäori employment by industry and by region was derived using the rate of change in employment by industry and by region between 2006 and 2012. The estimates of employment by industry by region in 2012 are used to inform labour force status, employment status, and employment by occupation.

HOUSEHOLD INCOME AND EXPENDITURE Information on household income and expenditure’ Mäori households was estimated using the Social Accounting Matrix (SAM) for the Mäori, the main modelling approach applied in the ‘Asset base, income, expenditure and GDP of the 2010 Mäori economy’ (2011) report. Within the working tables of the SAM, activity of Mäori households has been isolated.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 DEFINITIONS

WAIKATO REGION This report defines the Waikato region using Statistics New Zealand regional council boundaries for all aspects of the report apart from ‘collectively owned assets38’. For ‘collectively owned assets’, the Waikato region is defined in terms of Office of Treaty Settlement boundaries. Eleven territorial authorities are, either fully or partially, within the boundaries of the Waikato Regional Council. Nine of these territorial authorities are fully within the boundaries of the regional council: Thames-Coromandel district, Hauraki district, Waikato district, Matamata-Piako district, Hamilton city, Waipa district, Otorohanga district, South Waikato district, Waitomo district. The majority of Taupo district boundaries are within the boundaries of the Waikato Regional Council. A small part of Rotorua district boundaries are within the Waikato Regional Council boundaries. This report, where possible, provides breakdowns of the territorial authorities within the Waikato Regional Council boundaries.39 Where breakdowns are provided, the nine territorial authorities that are fully within the boundaries are presented.40 The entire Taupo district, including the small areas that are outside the Waikato Regional Council boundaries, is also presented . Rotorua district is not presented due to a large amount of employment and economic activity in the district occurring outside of the Waikato region. This means that the sum of the territorial authorities presented will not equal the Waikato Regional Council totals provided. For the collectively owned asset base, Office of Treaty Settlement boundaries were used to define the coverage of the region. Settlement boundary areas identified as being in the Waikato region were: Ngäti Te Ata, Ngäti Tamaoho, Hauraki, Waikato-Tainui (Raupatu), Waikato-Tainui (River and other claims), Waitomo, Ngäti Maniapoto, Maraeroa A&B, Pouakani, Ngäti Raukawa, Ngäti Koroki Kahukura and Ngäti Haua. Settlement boundaries within the region that have been previously used to calculate the asset base of other areas were excluded from our definition of the region to minimise double counting. The definition of the Waikato region for the collectively owned asset base does not directly align with the coverage of the Waikato Regional Council. In the broadest sense, the differences occur because the collective asset base: (1) includes Ngäti Maniapoto, which is part of the Waikato, Taranaki and Manawatu-Wanganui regional councils, and (2) does not cover the parts of Rotorua district that are included in the Waikato Regional Council boundary areas. The iwi covered by the settlement areas used to estimate the value of collectively owned assets in the Waikato region are: Ngäi Tai (Hauraki), Ngäti Hako, Ngäti Hauä, Ngäti Hei, Ngäti Kearoa / Ngäti Tuarä, Ngäti Korokï Kahukura, Ngäti Maniapoto, Ngäti Maru (Hauraki), Ngäti Paoa, Ngäti Porou ki Harataunga ki Mataora, Ngäti Pükenga ki Waiau, Ngäti Rähiri Tumutumu, Ngäti Tahu / Ngäti Whaoa, Ngäti Tamaoho, Ngäti Tamaterä, Ngäti Tara Tokanui, Ngäti Turangitukua, Ngäti Tüwharetoa, Ngäti Whanaunga, Patukirikiri, Pouäkani, Ngäti Raukawa, Rereahu, Waikato, Ngäti Hinerangi.

38 Assets held in collective ownership through Mäori authorities such as trusts and incorporations, rünanga, and Treaty settlement entities. 39 For a graphical outline of the territorial authorities within the boundaries of the Waikato region, see http://www.lgnz.co.nz/assets/North-Island-PNG.PNG 40 Most employment and economic activity within the Taupo District occurs within the boundaries of the Waikato Regional Council.

52 Mäori For the purposes of the Statistics New Zealand Census of Population and Dwellings, Mäori is defined as people who identify with the Mäori ethnicity. Because ethnicity is self-perceived, people can identify with Mäori ethnicity even though they are not descended from a Mäori ancestor. Conversely, people can choose to not identify with Mäori ethnicity even though they are descended from a Mäori ancestor. Ethnicity is not the same as birthplace. In this report, the numbers in the total employed columns in the industry and occupation tables do not add up because the ‘Not Elsewhere Included’ category may include some Mäori as Statistics New Zealand makes adjustments to their ethnic breakdown calculations. In other words, the not elsewhere included category is deducted from the total. This procedure is adopted for calculating ethnic proportions since we don’t know how many Mäori or non-Mäori fall into the not elsewhere included category. This method is used by Statistics New Zealand when providing ethnicity proportions.

Industry classification The industry classifications used in this research are the Australian and New Zealand Standard Industrial Classification (ANZSIC) 1996 version 4.1. This is a hierarchical classification with four levels: divisions (the broadest level), subdivisions, groups and classes. For the purposes of this research we have examined industries at the divisional level. This level provides a limited number of categories that show a broad picture of the economy and suitable for the publication of summary tables of official statistics. It should be noted that there is various categories under each of these classifications such as food and wood processing are classified under manufacturing.

Employment In regards to employment, the Statistics New Zealand Census of Population and Dwellings refers to people who are aged 15 years and over and usually resident in New Zealand that are in paid full or part-time work as ‘employed’. Full-time employment refers to a person who usually works 30 hours or more per week. People who are employed part-time usually work fewer than 30 hours per week, but more than 1 hour per week. Self-employed includes people whose main earnings in the tax year came from self-employment. Self-employment includes people who operate their own enterprise or engage independently in a profession or trade, and receive earnings from this. Self-employed and without employees refers to people who operate their own economic enterprise or engage independently in a profession or trade (including partnerships) and hire no employees. Employed is related to work in the seven days prior to the Census date in 2006.

Working age population refers to the population aged 15 years and over. Unemployed refers to all people in the working-age population who during the reference week were without a paid job, were available for work and had actively sought work in the past four weeks ending with the reference week or had a new job to start within four weeks.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Income is what a person aged 15 years and over receives before tax for a financial year from all sources, e.g. wages, salary, social welfare payments, interest, dividends, commission, pre-tax business or farming income (less expenses).

Households A household is defined by Statistics New Zealand as either one person usually living alone, or two or more people usually living together and sharing facilities (e.g. eating facilities, cooking facilities, bathroom and toilet facilities, a living area), in a private dwelling. A Mäori household is a household where at least one occupant is of Mäori ethnicity.

Rounding This data has been randomly rounded by Statistics New Zealand to protect confidentiality. Individual figures may not add up to totals, and values for the same data may vary in different tables. The numbers in the total employed columns in the industry and occupation tables do not add up because the Not Elsewhere Included category may include some Mäori as well as Non-Mäori.

54 ANNEX 1 MÄORI DESCENT POPULATION IN THE WAIKATO REGION

In addition to information about Mäori ethnicity, the Census also captures information about Mäori descent. Unlike ethnicity, which refers to cultural affiliation, descent relates to ancestry. This annex provides a profile of the Mäori descent population in the Waikato region using 2013 and 2006 Census information. In 2013, a total of 669,000 people were of Mäori descent nationally. Of this figure, 14 percent (92,000) were from the Waikato region. For 2006 and 2013 the Mäori descent population growth in the Waikato region (7 percent) was greater than Mäori descent population growth nationally (4 percent). Table A.1 shows the Mäori descent population in the Waikato region from the 2006 and 2013 Censuses.

Table A1: Mäori descent population in the Waikato region and New Zealand, 2006 and 2013

Mäori Descent Population

2006 2013 % Change 2006-2013

Waikato Region 85,422 91,635 7.3%

New Zealand 643,980 668,724 3.8%

Source: Statistics New Zealand 2006 and 2013 Censuses of Population and Dwellings

At a territorial authority level, the distribution of people of Mäori descent across the Waikato region is similar to the distribution of the usual resident Mäori ethnic population. Just over a third of the Mäori descent population in the Waikato region were in Hamilton city in 2013. Other districts with a large number of people of Mäori descent in 2013 were Waikato district (17 percent) and Taupö district (11 percent). Figure A.1 shows a breakdown of the Mäori descent population in the Waikato region in 2013.

WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 Figure A1: Mäori descent population in the Waikato region by district, 2013

Thames-Coromandel District Taupo District 5% Hauraki District 11% 4%

Waitomo District 4% Waikato District South Waikato District 17% 8%

Otorohanga District 3%

Waipa District Matamata-Piako District 7% 6%

Hamilton City 35%

For 2006 and 2013 censuses the Mäori descent population grew strongly in Hamilton city (up 13 percent) as well as the Matamata-Piako and Waipa districts (both up 11 percent). The Mäori descent population declined in Waitomo district (down 4 percent), South Waikato district (3 percent) and Otorohanga district (2 percent) over the same period. Table A.2 shows the change in the Mäori descent population within the Waikato region between 2006 and 2013. Table A2: Mäori descent population in the Waikato region by district, 2006 and 2013 Mäori Descent Population

2006 2013 % Change 2006-2013

Thames-Coromandel District 4,887 4,881 0%

Hauraki District 3,873 4,011 4%

Waikato District 14,022 15,345 9%

Matamata-Piako District 4,788 5,316 11%

Hamilton City 27,429 31,035 13%

Waipa District 6,726 7,491 11%

Otorohanga District 2,538 2,484 -2%

South Waikato District 7,344 7,137 -3%

Waitomo District 3,705 3,570 -4%

Taupo District 9,333 9,546 2%

Waikato Region 85,422 91,635 7%

New Zealand 643,980 668,724 4%

Source: Statistics New Zealand 2006 and 2013 Censuses of Population and Dwellings

56 WAIKATO MÄ ORI ECONOMY FINAL REPORT MARCH 2014 DATE OF PUBLICATION: SEPTEMBER 2014

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